The Financial Services Authority (FSA) is to order structured product providers to provide more information in their marketing to justify the use of terms such as ‘guaranteed', ‘protected' and ‘secure'.
In its latest quarterly consultation paper, the regulator explained why existing literature was of concern and detailed how it will introduce more guidance. It said: "In recent years, to meet demand from risk-averse consumers, the financial services industry has developed a growing and innovative market for products, including structured products, which are often described as 'guaranteed', 'protected' or 'secure'. "We have reviewed this market and concluded that some firms promote these products without any clear and adequate justification for the descriptions used. "We believe tha...
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