UKSPA slams IMA's Patterson over structured product remarks
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The UK Structured Products Association has slammed an IMA director for expressing doubts over the regulation of the products.
The UKSPA says IMA director of authorised funds and taxation Julie Patterson “needs to be educated about structured products”.
“It is disappointing that the IMA continues to be outdated with regard to structured products,” a statement says.
“Contrary to Ms Patterson’s comments, structured products are governed by the same regulatory framework which monitors investment funds.”
Patterson has repeatedly expressed concerns that the regulatory framework places an unfair burden on mutual funds, while structured products are subject to fewer restrictions.
Structured product providers - often banks - are not members of the IMA.
The UKSPA says it will be contacting Patterson to discuss the IMA’s concerns.
“The Association wholeheartedly agrees with Ms Patterson that all investments for the retail market should be open and transparent, however her assumption that the structured products sector is ‘resisting’ this objective is incorrect.
“The very existence of the Association, much like the IMA’s own existence, is proof of the sector’s commitment to this objective.”
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Readers' comments (2)
Mr Fisher | 4 Aug 2010 3:13 pm
Structured product providers - often banks
Mrs Miggins you have £50,000 in our deposit account safe but earning you very little. Put it in here and we will pay you much more - safe? 'cause it as long as nothing bad happens.
"..wholeheartedly agrees with Ms Patterson that all investments for the retail market should be open and transparent, .."
Hmmm - open and transparent you think so ?
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Londoner | 4 Aug 2010 3:50 pm
At least with investment funds, your investments are spread over multiple assets and do not have the same single vulnerability that many structured products have. Even after the FSA's review of structured products sales last year, and the findings of 'widespread mis-selling', we still see many examples of structured product marketing that underplay the credit risk, and the FSCS situation. The market has further to go yet in making these products open and transparent.
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