The maturing of structured products

STRUCTURED PRODUCTS

Scandal and regulation have been predominant factors in the UK structured product market. The industry has much maturing to do, writes Paul Burgin

The British structured product market is different from its European cousins. Products tend to be simpler, regulation heavier and distribution more fragmented. IFAs control less than one quarter of the structured market but have a lot of clout in defining public opinion. The precipice bond scandal and collapse of Eurolife, Arc, DRL, Keydata and NDF still loom large. Chris Taylor of Blue Sky Asset Management says events and regulation forced change, but not every provider has learned lessons from the past. “There is still a polarised and clear distinction between best in breed and also...