Why providers need to establish TERs for their products

How much do you think your clients would be prepared to pay up front in charges for a structured pro...

How much do you think your clients would be prepared to pay up front in charges for a structured product with a five-year term? 3%? 5%? 7%? How about 9%? In the case of Woolwich Plan Managers, it thinks the answer is 9%, as evidenced by the charging structure on its Protected FTSE Hedge Plan, which launched to the intermediary market last week. To be fair to Woolwich, it has been explicit about the charge and also points out because the fee is all at the front end, there is no annual charge. According to some, a 9% charge is actually pretty average for this type of product. Time will tel...