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Privalto UK will house a UK-domiciled set of capital-protected structured Oeics aimed at IFAs and the major platforms. BNP Paribas is due to announce details on specific products once they have received Financial Services Authority (FSA) approval.

Sisouphan Tran, head of Privalto UK, argued the range plugged a gap in the market for structured portfolios with a daily secondary market.

Investors will be able to sell out of the products from the moment they buy them, he explained, although capital protection will only apply at maturity.

"There will be no bid-ask price. The fund will trade at NAV with no exit fees," he said.

Unlike BNP Paribas's Harewood Solutions products, Privalto UK will also cater specifically for the IFA market, with initial and trail commission on all offerings.

"The main difference is that for Privalto we have an investment class for IFAs who need some commission from the funds," Tran observed.

He was unable to reveal the exact rates, but confirmed they would be in line with the marketplace.

In the Privalto range, Tran said BNP Paribas would continue its drive for transparency, which he singled out as the distinctive feature of its structured offering.

"What makes us a bit different is we set up the product to make the management as transparent as possible. There's a lot of misinformation about structured products, that they are a magic solution that does everything. We explain the risks, the returns and the costs to advisers."

For more information, see next week's Investment Adviser.