Poor PPN disclosure remains a concern, Claymore

Poor disclosure of the risks in principal protected notes (PPNs) is still a concern, says Som Seif, president of Claymore Investments, keynote speaker at the Structured Products conference in Toronto.

Seif said that some of marketing documents of PPNs did not properly highlight the risks of these investments. “We see this happens every day,” he said. “Some PPNs sold to investors do not match investors’ needs.”

Seif also expressed concerns about financial advisers who were not familiar with PPNs but who were distributing these products to investors without understanding the risk-return profiles.

Tracy Ross, senior counsel at Royal Bank of Canada (RBC), said that Canadian banks had been working

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