The IMA has cautioned investors to be on their guard with respect to the claims of structured products providers.
The trade body asserted that whilst many structured products claim to offer both stockmarket-related returns and capital protection, these guarantees should not be taken at face value as promoters are under no obligation to report performance, making it hard to assess the accuracy of claims about product returns. The IMA compared five of the National Savings & Investment's guaranteed equity bond (GEB) issues - which account for 54pc of the UK structured product market - with the performance of a fund tracking the FTSE 100, against which the GEBs are benchmarked. The findings revealed tha...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
