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Colin Parkin, Ample Financial Services

“The IMA is absolutely spot on this time. We use structured products quite a lot, but the caveat is ‘buyer beware’ because structured products hide charges and do not always declare everything in a readable format. You need to interpret what it is the products are actually doing. It is worth remembering that when a product indicates a 100 per cent guarantee, this may not in reality always be the case. Charges are often hidden, and you need an adviser to go through them who can let you know about the upside and the downside.”

Steven Robinson, Clarke Robinson

“I do not like structured products at all. Anything that sounds too good to be true usually is. They are definitely not transparent. They are shrouded in mystery. Nobody really understands them. I know they are not as bad as hedge funds, but I do not recommend these products, as I have never liked them. I have looked at these from time to time and simply shied away from them. I would rather focus on products people actually understand, which is what I advise them. Structured products have a place in the market, but certainly not for the clients I advise. People who are not willing to face ups and downs probably should not be going into equities in the first place.”

Amanda Davidson, Baigrie Davies

“Structured products are quite complex, and that contributes to their lack of transparency. They are not terribly straightforward. We do use such products, but very selectively. It’s hard for an investor to know exactly what it is they are giving up for the guarantee. I take the IMA’s point that you do not get something for nothing. If you need a guarantee, then you will pay for it somewhere down the line. They are difficult products to make transparent. With the markets all over the place, even within a day sometimes, then many people will prefer to opt for structured products because of a degree of certainty. Such products will be used a lot more because they give investors some underpinning of their investments.”

Jason Butler, Bloomsbury Financial Planning

“Structured products are all junk. I agree with the IMA. Most of it is complete baloney. This is all about companies needing something to sell rather than people’s investments needs. We have never used them and do not believe in them – they are complete pants. They either do not do what they say on the tin, or the client is paying such a huge amount for the perceived protection that it is not worth doing. There are other ways of achieving the same results with lower costs and more accessible products. This is all about companies and transactional advisers needing something to sell, not what clients want to invest in.”

Ian Howell, Capital Tower

“Structured products can be very confusing and hard for clients to understand. They are very often purchased by clients without fully understanding all of the risks involved. Any steps that are being taken to improve clarity or inform about risks is a good thing.

I would not say such products are terrible. A place does exist for structured products, as some clients like the idea of them. I assume the IMA is looking out for the best interests of the consumers, which is a good thing.”

Kevin Morgan, Consilium Asset Management

“I agree with the IMA. I have long had an issue with structured products and, as a consequence, we do not advise on them. In light of TCF, transparency is more important than ever before. One rather feels structured products are at best opaque, impenetrable at worst. I really find it very hard to recommend structured products. They are packaged as a ‘no-lose’ position, but what happens to the natural income yield that has been invested, for example? You miss out on that, so you need to factor this back into the equation. Indeed, one needs to consider how secure the options really are. There are many factors that need to be considered. We are not confident in recommending them.”

Mike Shaw, Hedley Asset Management

“We are very cautious about structured products in general and have been from the outset. We firmly believe that if you do not understand what is under the bonnet, then you should not buy it and certainly should not recommend them to your clients. Having said that, we appreciate there has been some substantial improvements in terms of transparency and how the products have been put together by specialists and institutions.”