SPwrap predicts structured products surge

Specialist structured product platform SPWrap’s decision to carry out a “major adviser push” suggests revived interest in structured products post-RDR, but they are still approached with caution by advisers.

Marc Chamberlain, executive director at Morgan Stanley, has noticed “healthy volumes” in interest in structured products. “Part of the RDR was that if you wanted to be fully independent, you couldn’t discount certain products, and structured products were explicitly included as an example of this,” he said. Advisers are seeking information on how they could work for clients, he added.

While providers saw the RDR as positive for structured products, for some advisers, issues around transparency and cost remain. “I don’t think they’re easily understood, they’re overly complex. If people want to invest money, there are cheaper and easier ways,” said Dennis Hall, managing director at Yellowtail Financial Planning.

“It’s for people who want access to something without risks, but it’s at great cost. If you can’t afford to take the risk, don’t invest.”