UK regulator clamps down on structured product selling

The FSA says its research shows financial promotions for products offering income, capital growth or capital security can be complex and difficult to understand. It is therefore proposing that firms selling ‘structured capital-at-risk products’ (scarps) – an investment that provides a specified level of income or growth over a fixed investment period but do not provide a guarantee on the return of initial capital – be required to provide consumers with risk warnings and send their customers

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