Structured product investors could see increased returns as providers launch new commission-free plans under the RDR.
Previously, structured products usually set 3 per cent of a client investment aside for adviser commission, but that amount is now put directly into the plan.
Marc Chamberlain, executive director at Morgan Stanley, said this could help to provide a better return on investment.
“From a transparency point of view, I think it’s a better thing,” Mr Chamberlain said. “There’s potential for these products to give you a better return than before.”
But because of softening in the markets, lower volatility and less bank lending, headline rates have dipped, in effect offsetting the commission ban’s benefits.
Mr Chamberlain said those who invested a year ago will find their investments have increased in value on the secondary market.
In fact, it is not only believed the secondary market will grow in popularity, but the traditional plan will soon fall out of favour.
In September 2012, David Stuff, managing director of Meteor Investment Solutions, told MM plans will be dead within six months.
However, Mr Chamberlain said the market is more likely to simply give investors what they want and the products will be delivered in several different ways.