Fidelity move sparks debate

structured

codes of best practice need to be set up to ensure fund managers retain presence in market

Fidelity's decision to stop linking funds to structured products could be mirrored by other providers unless codes of best practice are established with investment banks. Since the start of 2003, some 38 structured products linked to single funds or baskets of funds from 16 issuers have been launched in the UK market. The advantages of linking to actively managed portfolios are immediately evident to structured product manufacturers and their investors, but the case is less clear cut for fund management groups. Structured product providers often enjoy increased inflows into their wares...