Pricing and risk in changing markets
Pricing and risk have been influenced by the state of financial markets, but also by regulation. Tim Mortimer of Future Value Consultants analyses how they have been affected, with particular reference to the UK Financial Services Authority and the rules it has adopted in the wake of its structured product review
The UK Financial Services Authority (FSA) published its structured product review in its final form in March 2012, offering product providers and distributors guidance that was complemented by the preparation required ahead of the introduction in 2013 of the Retail Distribution Review. Like many regulatory papers, the structured product review outlines accepted practice for forward-looking participants and a warning to those compliance laggards.
The paper has much to say on credit risk and
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