15 August 2010 / by Lois Avery
Structured products are often dismissed by investors because of ‘misinformation and misrepresentation’ according to an industry website.
StructuredProductReview.com has acted to tackle the problem by bringing together financial advisers, both pro and anti structures, to debate the subject.
Ian Lowes, founder of StructuredProductReview.com, has urged advisers to no discount structured products when dealing with a client’s investments.
They are often avoided for fears that they they are risky and complicated.
He said: “They are mainstream products and should be presented as such.
“However, the seemingly constant mis-information and lack of understanding of the products in various quarters often misrepresents what can be an extremely beneficial investment solution.
“StructuredProductReview.com believes what is needed is a full industry debate to bring the issues into the open and tackle them once and for all.
“We are exploring the opportunity to bring together trade bodies such as the Investment Management Association and the Structured Product Association, members of the press, and commentators and critics on both sides of the debate for this kind of event.”
The UK Structured Products Association (UKSPA) recently hit out at the IMA after one of their experts crisitcised structured products saying they were ‘opaque’ and do not allow investors to know where their money goes.
But the UKSPA responded saying they were disappointed by her ‘outdated’ view on structured products.
The statement from the UKSPA added: “We suggest that the IMA should stop being intimidated by investments that are not funds and, instead, join the UK Structured Products Association in its efforts to promote the benefits of a diversified investment portfolio which should include a range of complementary products.”
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