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‘Advisers have put up barrier against structured products’

The term “structured products” should be ditched in favour of protected invest-ments, says Barclays Wealth director Colin Dickie.

Speaking at a Money Marketing round table on structured products, Dickie said most businesses now work in the genre of protected investments.

He said structured products may have served their purpose in the early to mid-1990s but advisers and investors have now put up a barrier against these products as they are unsure what they actually deliver.

He said: “The challenge for us protected investment providers is that while the perception is not there, we are actually in the market as traditional fund offerings in that we are looking for the same pounds. The problem is we are put in a box as a completely separate investment entity and part of that has to do with the term ‘structured product’ and the unknown that surrounds it.”

Nucleus chief executive David Ferguson believes caution has to be advocated if products are to be placed under the protected banner.

He said: “We are talking growth products here so we need to be careful as we have had a history of income-generating products that have been anything but protected. If a five-year income-paying structured product comes to market and does not protect your initial capital if it goes wrong, then the last thing it should be dubbed is a protected investment.”

NDF director Paul Bispham said: “Protection is just one of many things a structured product offers. You can use them to gain exposure to all market conditions while they are also something that your clients can make money out of in flat or slowly growing markets.”


Mass exodus

This week’s focus, certainly within Money Marketing, has been over the issue of primary advice. Tom Baigrie, managing director of Lifesearch and also of London-based IFA Baigrie Davies, made one of the most telling contributions to the discussion. He argues that current RDR proposals over primary advice will “hasten the retreat of advisers from the mass market and its replacement by those who sell but do not advise”.

Platforms grow by nearly 50% a year

Assets held on platforms are growing by 44 per cent a year and will reach £205bn by 2012, says Lipper Feri.In its first UK fund platform industry report, published this month, Lipper Feri says assets under administration on platforms totalled £64.6bn at the end of March and are set to reach £83bn by the end […]

Friends looks at way ahead

Speculation over whether Friends Provident will sell parts of its business or become a takeover target has knocked advisers’ confidence in the insurer.Following its failed merger bid with Resolution and chief executive Philip Moore’s resignation, Friends has hired Goldman Sachs and JP Morgan Cazenove to advise on strategy as it undertakes a review of its […]

Boulger backing threeyear fixes for FTBs

Brokers should offer threeyear fixed-rate mortgages to first-time buyers in the current property market, according to John Charcol senior technical manager Ray Boulger.

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]


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