Paul Burgin looks at why market conditions require more exotic structured products to maintain protection and pay-offs.
Britain is a by-word for boring in the structured product world. In recent years, the simple capital-protected FTSE 100-linked product has reigned supreme, in contrast with the variety of multi-index, baskets and best-ofs sold widely on the Continent. The unique shape of the UK market is caused by three main factors. Since the Eurolife and precipice bond scandals, execution only sales have all but disappeared. That has left manufacturers two main routes – the IFA channel or bank networks. IFAs are highly regulated and highly cautious. Branch staff need simple products to sell over the...
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