FSA publishes exchange traded product factsheet

The fact sheet, which the FSA said does not constitute guidance, said ETPs can pose a risk both in terms of conflict of interest issues and collateral requirements. It said physical and synthetic strategies can expose investors to high levels of collateral and warned the collateral provided must be of sufficient quality and quantity to cover any losses. The watchdog also sounded concerns over potential conflicts of interest arising from the number of third parties involved in ETP structures. Third parties include agents arranging stock lending, firms selling swaps to funds using synth...