Consumers struggle to understand structured products and tend to over-estimate potential returns by as much as 10%, the regulator has found. The likely reasons make uncomfortable reading for the sector...
The Financial Conduct Authority (FCA) is once again being forced to deal with failings in the structured products sector, investments criticised by FCA chief executive Martin Wheatley in 2013 as "spread bets on steroids". This is after regulatory intervention in 2009 - a probe into investment advice on Lehmans-backed products that found 69% was unsuitable or unclear - in 2011 - fining Santander £1.5m for misleading investors into thinking structured products are protected by the Financial Services Compensation Scheme (FSCS) - and in 2013 - forcing both Investec Bank and Morgan Stanley to...
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