Providers of structured products need to better assess if the investments are value for money for investors who struggle to understand them and tend to significantly over-estimate returns, the regulator has said.
In a far reaching thematic review, the Financial Conduct Authority (FCA) found that, not for the first time, the structured product market is not working for investors. Products are so complex investors routinely over-estimate potential returns by as much as 10%, the FCA said. The regulator has asked some of the unnamed firms involved in its review to carry out more work to see whether any of the issues identified have resulted in consumers being disadvantaged. If on-going supervision of the market does not show firms improving their behaviour the FCA raised the prospect of further...
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
