The structured product police: Is this a good idea?

In the latest clampdown on the much maligned products, recent guidance issued by the regulator said providers need to play a greater role in monitoring the distribution of structured products in order to reduce mis-selling. Findings from the FSA’s recent review of the structured product market suggest providers rely wholly on distributors to identify target markets, and such a strategy increases the potential for mis-selling. To ensure products are being sold only to suitable investors the FSA set out radical proposals requiring providers to carry out due diligence on distributors, in...