In its response to the FSA’s review of the structured products Industry, the firm says the regulator has taken a “necessary and informed stance” in delineating between the past and pointing to the future for the sector.
That future, says Blue Sky must mean ‘‘the end for simplistic headline rate driven marketing of ‘easy products’.”
Chief executive Chris Taylor says the output from the regulator has left little doubt as to the immediate lessons for the industry as a whole.
He says: “The guidance to providers is crystal clear – investors and advisers must be presented with information that ensures they understand what they are investing in and any risks of doing so, specifically detailing counterparty risk, any market risk, liquidity risk and compensation scheme rules, in language that the target audience can understand.
“The guidance to advisers is equally clear – in respect of the standard of advice that it expects them to meet.
“Structured products are suffering from advisory issues that are generic and far wider financial services industry issues. But, the opportunity is now presented for the structured product industry to respond positively, and to demonstrate its value and its integrity.”