Product development director Mark Dickson said he expects EU regulatory changes to focus on substitute retail investment products. He said: “It is presumably going to try to ensure structured deposits are marketed and promoted in the same way as other structured investments and we would generally welcome that because they are the same product. We still are guessing what the legislation might be but I would not be surprised if this is the attempted outcome.”
Dickson said the firm uses the same marketing and disclosure standards when issuing deposits and bonds as they are economically the same product.
He said: “We expect something to happen. Hopefully, it will raise the level of disclosure to that offered in bond-based products. It is a very technical point that deposits are outside Mifid but why not treat them as if they fall inside the directive and then everybody understands?”
He said regulatory harmonisation in this area would be positive even though several firms were already using the same standards for both products.
Dickson said: “Anything that forces providers that only do deposits to come into line with the best practice in the bond-backed universe is a good thing.”