Canadian IDA weighs risks and merits of PPNs

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The Investment Dealers Association of Canada (IDA), a self-regulatory organisation, has published a guide to assist investment dealers and investors to evaluate the merits and risks of principal-protected notes (PPNs).

The IDA says the Due diligence guide on principal-protected notes was developed to implement a recommendation made in a special study it carried out two years ago, which found that PPNs sold at that time accounted for half of the C$14.1 billion of hedge fund assets in Canada. The

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