Finra targets conflicts of interest in structured products industry

The US regulator has published a report saying issuers and sellers should be doing more to manage conflicts of interest that arise when deciding which products to sell and to whom

US broker-dealers that issue and sell structured products should be doing more to manage conflicts of interest, says the Financial Industry Regulatory Authority (Finra) in a report published this week. If they do not, Finra will consider enacting new rules to make robust conflict management policies mandatory at broker-dealers.

Conflicts of interest in issuing and selling structured products can arise when firms decide what products to offer and what markets and customers to target, says Finra