SEC says crucial information being withheld from investors in structured notes

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The US Securities and Exchange Commission (SEC) warned banks in a letter sent last week that they will have to give investors more details about what their structured notes are worth.

The banks must now "prominently" disclose an estimate of their notes' fair market value to investors when they are making their investment decisions. This should be "a single number" that represents the sum of the underlying bond and embedded derivative. Structured notes typically feature a derivative such as an op

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