Perhaps somewhat surprisingly Taylor says that he agrees with the IMA’s findings with regards to National Savings & Investment but the key is differentiation between the various types of structured products available.
The IMA, however, stands by its statement claiming that although GEBs are not necessarily representative of the performance of all structured investments they demonstrate the problems relating to disclosure.
“The IMA does not think GEBs are typical of the whole structured products market nor have we claimed this,” says Richard Saunders, the chief executive of the association. “They do, however, illustrate the point we are making that there is a great need for a more level playing field. Structured products are not subject to the same level of disclosure to investors as regulated mutual funds are.”
Despite his reservations 208 funds managed by IMA regulated managers have exposure to structured products. Taylor says that while markets look set to continue to be challenging wealth managers should be using all the tools to provide capital growth for their clients.