FSA finds weaknesses in struc prod design

The FSA has issued further guidance for structured product firms after identifying weaknesses in the way providers design and approve the products.

The regulator assessed seven major providers of structured products between November 2010 and May 2011, who together are responsible for approximately 50% of the UK retail market by volume and value. While there had been some improvements, the regulator warned there were still weaknesses which increased risks to consumers. Firms tended to focus on their own commercial interests rather than consumer needs, it said. Following this review, the FSA is publishing guidance that firms should consider when designing structured products and dealing with the after sales process. Much of the gui...