Editor's letter

The NASD guidance does seem to suggest that structured products should be the preserve of the privileged few who are eligible for options trading

Just as one regulatory headache looks as if it is fading away another one rears its head. Last month the UK's Financial Services Authority (FSA) said it is disbanding the team investigating structured capital-at-risk products mis-selling after two years of active service. Meanwhile, the US National Association of Securities Dealers (NASD) published a notice to members that sent tongues wagging on Wall Street.

In essence there is nothing new or controversial about the NASD's desire to see structured products marketed accurately and diligently. But, as our cover story details, the guidance does seem to suggest that structured products should be the preserve of the privileged few who are eligible for options trading accounts. And it could be a worrying development for many on the Street if the NASD moves further to limit the "retailisation" of structured products.

In Europe, though, the market seems to be going from strength to strength. Innovations covered in this issue, for example, include Royal Bank of Scotland's combination account, which effectively marries a high-interest savings account with a structured product. We also look at how the FSA has made some fundamental changes to existing retail investment structures by creating Ucits-compliant Oeic structures, and analyse the resulting innovations.

Talking of innovation, as many of you are already aware, November's issue will be a bit different. Next month we honour those companies that have proved themselves to be the shining lights of the structured products market, recognising excellence and innovation. Our awards are editorially chosen after extensive research and cover more than 20 categories, ranging from Technology Innovation of the Year to Marketing Initiative of the Year.

To give the winners the recognition they deserve we will be presenting the awards on the evening of November 2 at our inaugural conference at London's Renaissance Chancery Court Hotel. It's not too late to sign up to the two-day event and awards dinner, so visit www.incisive-events.com/sp2005 now.

Paul Lyon

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