FSA intervenes in 'unfair' structured product T&Cs

Investec Bank and Morgan Stanley have both modified the terms and conditions of their structured products after the Financial Services Authority (FSA) found terms in both were potentially ‘unfair' to clients.

Investec has agreed to change terms in the contract for its Investec FTSE 100 Enhanced Kick-Out Plan 21. Morgan Stanley will change terms in the contract for its Morgan Stanley FTSE Gilt Backed Growth Plan 9.  In the FSA's view, one term gave Investec a broad discretion to cancel a customer's contract if the customer breached the contract in any way. The FSA was concerned that customers would not know when Investec could cancel the contract or have the opportunity to rectify a breach. The FSA also believed that a second term did not clearly explain the process for cancellations outsid...