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.”