Tag Archives | Risks

Regulator calls for a fresh approach to rising red tape

Andrew Haldane who sits on the Financial Policy Committee and is the Executive Director for Financial Stability at the Bank of England has called for the simplification of the rule book, starting afresh. With a strategic review rather than the historic piece-meal approach that has generated a “steadily rising tide of red tape”. Structured investment […]

Read full story Comments are closed

What to do with the legacy book?

Over the last few years, the number of structured solution providers has reduced as banks, building societies and brokers pull back from the market. As a result there are a number of legacy books of business that will need to be serviced by those firms no longer offering structured products. Over the last few years, providers […]

Read full story Comments are closed

Where was the risk warning and the level playing field?

It has been interesting to listen to the debate about gift cards offered by retailers. Some people seem to view them as a valid alternative to and safer medium by post than cash. Yet recent events have highlighted that card holders are dependent on the issuer to honour their obligations rather than the Bank of […]

Read full story Comments are closed

Beware of steep slopes: The return of structures with leveraged downside.

A lot of water has passed under the bridge since the “Precipice Bond” scandal of nearly a decade ago and the UK structured investments industry has moved on. However, structures with leveraged downside have begun to creep back into overseas markets! http://www.structuredretailproducts.com/blog-story/15513/beware-of-steep-slopes-the-return-of-structures-with-leveraged-downside

Read full story Comments are closed

Where next for interest hedging by SMEs?

In June 2012, the FSA published the findings of their review into the sale of interest rate hedging products to small and medium sized businesses (‘SMEs’). The FSA “found that when properly sold, in the right circumstances to the right customers” hedging products “can protect customers against the risk of interest rate changes.” However, they […]

Read full story Comments are closed

Risks of Structured Investing

Whilst there are many benefits of structured solutions, there are also risks associated with purchasing them that often mirror those of other investments. Below is a table showing some of the risks that might be associated with a structured investment and some potential mitigating factors. Investors who are not sure whether a structured investment is […]

Read full story Comments are closed

FSA Review – poses more questions?

Identifying your target clients and designing solutions to their problems/needs does not sound like rocket science. Nor does having a robust process for testing and bringing them to market and ensuring they do what it says on the tin. Yet the FSA take the view in the final guidance on Retail Product Development and Governance* […]

Read full story Comments are closed