Simply the best?

Distributors of European retail structured products now need to conduct suitability and appropriateness tests and ensure they have achieved the best possible result for their customers based on a variety of factors including price. What implications does this have for the structured product market? By Ryan Davidson

risk-1207-12-gif

A retail distributor gets a call from an investment bank about a new structured fund it has just created. The product offers a full capital guarantee and uses a proprietary algorithm to go long those stocks from a selected universe with the best valuation and earnings momentum and short those with the worst outlook. There are also some fancy bells and whistles that lock in positive performance under certain circumstances. Before November 1, the distributor could, if so inclined, decide to sell

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here