Reyker expands into structured products

Merchant Capital custodian and administrator Reyker Securities has set up a structured products operation, FTAdviser can reveal.

Reyker, who was established in 1983, said that the “recent changes” in the structured product industry has offered it a “unique opportunity” to leverage on its expanded capability and regulatory permissions, and will start to bring out new structured investment plans for advisers. Reyker said it would design, promote and administer the plans.

Its current product on offer is the Diversified Dual Index Kick-Out Plan - Defensive Series 1 has two counterparties: the Royal Bank of Canada and Morgan Stanley. Advisers can either choose which counterparty or can have a 50/50 combination.

The six-year term product is linked to the performance of the FTSE 100 and Euro Stoxx 50 indices.

The defensive kick-out feature has four early closure points starting at 90 per cent of initial levels in year two. Reyker also assures advisers that adviser charging “can be facilitated”. The offer period closes on 5 March 2013.

Ian Lowes, managing director at Lowes Financial Management, added: “Competition is good for any sector as it leads to greater innovation and reduced complacency amongst providers. We therefore welcome Reyker’s entry into the market and hope to see good, sensible products being launched.”

Reyker Securities did not respond to FTAdviser’s enquiries.