FCA demands improvements from structured product providers

Structured product providers must do more to ensure their products are understood by consumers who tend to significantly overestimate the returns on offer, the FCA has said.

In a far-reaching thematic review, the Financial Conduct Authority (FCA) found that the structured product market is still not working for retail investors. Products are so complex that consumers routinely over-estimate potential returns by as much as 10%, the FCA said. The regulator has asked some of the unnamed firms involved in its review to carry out more work to see whether any of the issues identified have resulted in consumers being disadvantaged. The FCA also raised the prospect of further regulatory action if ongoing supervision of the market does not show firms improving ...