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.”