Hartmoor has partnered with Aldermore Bank as deposit taker and made its first products opened for subscription today (6 January).
Mike Newman, director of structured products at Hartmoor, said: “We strongly feel there is a need for an independent provider who is focused on simple, well-researched product ideas and giving great customer service.
“Our goal is to design products that meet genuine customer needs and put the customer at the heart of everything we do.
“We look forward to offering the market something new, and are excited to have Aldermore as a strategic partner.”
The two products are FTSE 100 Kick Out Deposit Plan one, a six-year plan that offers the potential for maturity at the end of years three, four, five or six with a fixed return of 4.25 per cent per year, and FTSE 100 Deposit Growth Plan 1, a six-year plan, that will pay a return of 31 per cent.
For the former if the FTSE 100 does not close at or more than its start level on all of the kick out dates then the investor will only receive back their initial deposit while for the latter this will be the case if the index closes below 90 per cent of its start level.
Andrew Reeves, director of Northamptonshire-based The Investment Coach, said: “I don’t use structured products but it is something I keep under review as an independent financial adviser.
“I don’t use them because of the opaqueness and they tend to have a maturity date which may not fit with the client’s plans.”