UK IFAs prioritise creditworthiness and capital protection

The most important feature of structured products is pricing and terms, although this is closely followed by the creditworthiness of the issuing bank, according to UK IFA (independent financial adviser) polled yesterday at the FVC conference in London. Forty-four percent of the IFA audience identified pricing and terms as the most important feature, with creditworthiness taking 25% of the votes. Simplicity (at 22%), commission level (7%) and brand recognition (1%) were the other categories polled.

When questioned on how structured products add value, the same audience – again reflecting the caution of the current market – ranked capital protection as the leading attraction. Preserving capital was top of the list for 55%, with access to new underlyings at 23%, enhanced returns at 18%, and tax advantages 3%.