Identifying Conflicts of Interest in Structured Products Offerings -

With FINRA and other regulators focused on conflicts of interest in the broker-dealer industry, market participants are working diligently to identify and disclose, and where possible, mitigate, potential or actual conflicts of interest. In this article, we summarize the types of conflicts of interest that may present themselves. We encourage broker-dealers to consider these relationships and arrangements, and any others that might apply, in connection with their offerings of structured products and the formulation of conflicts of interest policies.

As we discuss in more detail below, some conflicts of interest are inherent given the nature of the product and the distribution channel. Other conflicts may arise due to the specific nature of the transaction.