View more on these topics

Credit risk main deterrent to structured products, says survey

Fifty eight per cent of advisers rank credit risk as the main reason why they would never or rarely recommend structured products to clients, according to a survey from Morgan Stanley.

The survey of just over 100 financial advisers revealed that 16 per cent cite not liking the products on offer as the key reason against investing in structured products.

Eight per cent cite a lack of interest from clents and 5 per cent a lack of understanding as why they would not invest in them.

Nevertheless, the survey reports that 76 per cent of financial advisers rank structured products as their preferred investment type when recommending investment options to clients.

This represents a 21 per cent increase from December 2008 when structured products ranked third behind bonds and mutual funds.

Forty five per cent of advisers have been more inclined to recommend structured products in the past six months, compared to 40 per cent in December 2008.

Of those that recommend structured products capital protected products are the most popular with 86 per cent, followed by kick out features, 79 per cent and fixed term products, 71 per cent.

Fifty six per cent of respondents would recommend products with a level of soft capital protection but only 33 per cent of respondents would recommend a product with no capital protection at all.

Executive Director Marc Chamberlain says: “The survey results indicate a much bigger appetite than we expected among financial advisers for structured products and are also extremely encouraging news for providers.”


Growing pains

There has been no stopping this market – or these markets, it would be more correct to say. The bounce in the UK was approaching a third over less than six months last week. In some markets, it was even greater. This prolonged period of appreciating share values has given rise to a new phrase – the pain trade.

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm