Keep it simple - Supervisors have taken an increasing interest in structured products recently. But regulating complexity isn’t easy

Originally published in International Financial Law Review on February 5th, 2013.

Structured products have come under considerably greater regulatory scrutiny in recent years. In the US, regulators have become increasingly interested in structured products as the market for these products has grown to approximately $64 billion in 2012. Although structured products are relatively new to the US market, they have a long history in Europe, where the market, despite recent volume declines, remains deeper and more varied than in the US.

Investors on both shores have sought out these products for their higher yields and tailored return profiles, which provide portfolio diversification. These products are designed to meet the needs of investors and offer distinct benefits that cannot otherwise be easily obtained. However, regulators have expressed concerns that many investors who purchase these products may not fully understand their risk profiles or their costs relative to benefits, and that the products may be too complex for retail investors.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP - Structured Products | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.