IAS 39 to give structured products market a helping hand

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International accounting standard 39 will improve transparency in the UK structured product market and should allow investors to get better prices and providers to make better deals

In January this year the International Accounting Standards (IAS) Board introduced a new standard known as IAS 39, which affects the reporting of fair value of derivative contracts. Complex accounting, and regulatory standards and requirements can have important and long reaching implications, as was the case a few years ago with another cryptically named ruling - IR35. This ruling affected the consultancy industry. Structured products are put together by a product provider purchasing one or more derivative contracts from an investment bank. These cover the investment proceeds for invest...