The pitfalls of structured products

intermediaries have key role to play in assessing risks associated with structured products so that investors can make an informed decision

With interest rates low and stock market returns uncertain, financial product providers are rolling out a series of guaranteed products featuring protective measures. While some investors are attracted by the headline benefits these promise, financial advisers who serve as distributors are advising a degree of caution unless the complex terms and structures are properly understood. 'There is still a great deal of choice out there for risk averse investors,' said Roderic Rennison, group financial services director at Charcol. 'But as market conditions have become more challenging, provide...