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Banks setting up structured association

A number of banks are working towards the launch of a UK structured product association within weeks, Money Marketing understands.

The association will try to act as a single voice for the structured product industry. It will seek to make membership as inclusive as possible, including insurance companies and other sub-groups in order for the group to gain sufficient influence.

A source close to the group says: “It is to provide a single voice for structured products as investments. Currently, there is around £45bn in structured products in the UK, so it is a huge area of investment.

“This is about what the industry can do to help balance some of the negative publicity regarding some of the pro- ducts and about helping to educate people about investment risk.”

Banks received a battering after the FSA announced it was commissioning a wider review of the structured product market following its investigation into plans which were backed by Lehman Brothers.

A senior banker involved says: “The FSA review is not the driver for the association but it is clearly one of the points where there is plenty of need for input from the industry as to how to interpret it, what it means for the industry and how things move forward. The need to provide a more balanced view on structured products is more relevant than it was 18 months ago.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. This will have nothing to do with the potential loss of millions of pounds of revenue, if they’re no longer allowed to sell these over-priced poor value products to the unsuspecting public, via their tied advisers then!

  2. Well it can’t be any worse than the IMA! They just punt funds and move sector goalpsts depending on which funds have massively underperformed. The big villain in this is the FSA which has not punished the ratings agencies not locked up any of the Lehman’s boys that lossed billions in the first place.

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