Assessing good value
How can an investor calculate the true value that a structured product represents? The solution is far more complex than one might imagine, as Robert Benson discovers, and it is has implications for the industry as a whole
In a recent publication1, the UK’s Financial Services Authority said most consumers “are likely to have difficulty calculating the ‘fair value’ of [structured] products. This complexity may explain the wide variation in charges and the value-for-money offered by these products.”
This statement follows comments in the US by the vice-chairman of the US National Association of Securities Dealers, who stated that “intricate investment vehicles being created by some financial institutions
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