FSA OKs securitised derivatives, but tax man may come calling

The FSA's plans to allow a market in securitised derivatives looks set to be a winner if European appetites for this type of product are anything to go by, however the London Stock Exchange is warning that investors will have to do their homework in order to avoid paying the same 0.5% stamp duty as levied on ordinary share purchases. Securitised derivatives are a way of taking a punt on the future price of shares without actually buying those shares. Unlike spread betting, however, it involves stumping up cash to buy products, derivatives, which will promise to return cash or sh...