Structured products face a battle of perception in the US
That US structured products sales continue to rise despite a prolonged campaign of negative reporting by many mainstream media outlets is remarkable. This year the market has suffered several regulatory actions, and an investor losses class action amid a substantial tightening of the regulatory environment. Now uncertainty regarding increased regulatory scrutiny would appear to complete the perfect storm of headline risks. Joti Mangat hears how the stakes could be about to get highter
In the two years since the phrases ‘structured finance' and ‘principal protection' passed into common parlance amid the fallout from the Lehman Brothers bankruptcy, structured products houses have come under increasing fire from the guardians of US civil society. For organisations seeking to run an effective structured investments business in these conditions, the challenge has become as much about managing potential reputational risks as offering good products and customer service.
Now that
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