Prop index growth sparks legal fears

Frying pan to fire?

baris-jay-16166-highres

Question: when is a debt security not a debt security? Answer: when it does not offer principal protection, contains early redemption clauses or is acting as a pass-through conduit for an underlying index.

That may have the rough form of a joke, but lawyers who work for big structured products houses in London are not laughing. Some fear the safe harbour provided by the UK’s collective investment scheme (CIS) regime – which gives banks broad freedom to sell derivative-based products to retail in

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: