Are Structured Investment Products The Way Forward

01 October 2009 / by Rebecca Sargent

As retail structured products continue to be popular despite the collapse of Lehman Brothers more than a year ago, financial data collection firm Defaqto has launched a free guide to structured products, to help people decide if they really are the way forward.

The guide comes ahead of the Financial Services Authority’s Wider Implications review of structured products that is due to be published shortly. The review will cover both Lehman-backed and non-Lehman-backed products sold previously, with a focus on product design, marketing, production and sale.

Structured products have proven popular during economic uncertainty, offering the potential of higher income during a low interest rate era, in addition to an element of capital protection.

Commenting, Fraser Donaldson, author of the guide said: “The recommendation of a structured product in the retail market is all about juggling the benefits and pitfalls of several investment concepts, and matching the outcomes with the risk profile and goals of the client.”

The guide is aimed at potential investors and advisers, and looks at the separate components of structured products while highlighting the key issues and technicalities that need to be researched and understood.

Mr Donaldson hopes that the guide will give people, “enough knowledge to know what to look for, and how the subtleties of the terms of the product interact.”

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Written by Editorial Team