In evaluating structured products, all the risk factors need to be balanced against the benefits to ensure that the risks don’t undermine the benefits....
When recommending structured products, advisors need to ensure risk and return profiles are suitable for investors. Full disclosure also requires transparency about the costs of investing. But risk-return profiles in structured products sometimes depend on the interplay of guarantees, conditions and pay-offs. Embedded costs are difficult to evaluate but listed products should be disclosing these....
In evaluating structured products, all the risk factors need to be balanced against the benefits to ensure that the risks don’t undermine the benefits....
