Structured products are often riskier and more expensive than they appear, and are usually accompanied by inconsistent, confusing and complex literature, consumer champion Which? warns.
It says some products promising to guarantee investors' money or offer ‘100% capital protection' provide contradictory information warning investors of the risks if the product provider, or counterparty providing the capital protection, goes bust. It says its investigation, the first of several into UK financial products, found "great variation" in how well the risks were explained. Additionally, it says most have a fixed end date at which point customers' investment returns are calculated. It says this means investors do not have the option of waiting for markets to recover if the in...
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