Five trade associations recently released a draft set of principles governing structured products for retail investors. And it's about time.
The non-binding principles focus on the relationship between product providers and distributors. To be honest there is nothing particularly groundbreaking and, to my mind at least, the principles simply detail existing best practice. Nevertheless it's encouraging to see the associations finally take the market seriously.
The associations (Isda, the European Securitisation Forum, the International Capital Market Association, the London Investment Bankers Association and the Securities Industry and Financial Markets Association) have invited comments on the proposals before May 30.
If you have any thoughts you would like to share then do let me know.