UKSPA hits back over structured product remarks

The UK Structured Products Association (UKSPA) has slammed an Investment Management Association (IMA) director for expressing doubts over the regulation of the products.

The UKSPA says Julie Patterson, the director of authorised funds and taxation at the IMA “needs to be educated about structured products”.

“It is disappointing that the IMA continues to be outdated with regard to structured products”

“It is disappointing that the IMA continues to be outdated with regard to structured products,” a statement says.

“Contrary to Ms Patterson’s comments, structured products are governed by the same regulatory framework which monitors investment funds.”

Patterson has repeatedly expressed concerns that the regulatory framework places an unfair burden on mutual funds, while structured products are subject to fewer restrictions.

Structured product providers—often banks—are not members of the IMA. (article continues below)

The UKSPA says it will be contacting Patterson to discuss the IMA’s concerns.

“The Association wholeheartedly agrees with Ms Patterson that all investments for the retail market should be open and transparent, however her assumption that the structured products sector is ‘resisting’ this objective is incorrect.

“The very existence of the Association, much like the IMA’s own existence, is proof of the sector’s commitment to this objective.”