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World: Shaw Capital Management | FSA issues alert on structured products

With Alice RossPublished 6 June 2011 10.59 Clock | Last update: 6th June 2011 10.59 Clock investment products described as collateral?? protected? or? safe? may be an explanation, what exactly these terms mean, in the latest warning by the Financial Services Authority, the financial companies that are not properly advertise the risks of structured products consumers.So known that lead exposure to people offering the stock market with one been some degree of protection promoted, are they? without a clear rationale and appropriate use for the labels? The regulator said in a quarterly consultation paper on Monday. He suggested that policies that force financial services, would explain to the use of terms such as introducing? Guaranteed? in advertising or sheets.EDITOR choice analysis S:? Finance? Shadow-boxing – Feb-02Tony Jackson: cat and mouse game – Jan-30Lex: Financial Crisis Commission investigation – Jan-27Goldman president warns of banking rules – Jan-26Reforms need to get the capital markets – Jan-26Insight: Road Map, that opens up the shadow banking system – Oct-18Structured products are increasingly used by banks and asset managers for consumers by the rate of global supply chain at a time who are tempted markets when returns on cash are always zero.Typical include products will block the capital for five years and offer investors a share of a return on the stock market during this period. But a lot? Guaranteed? Product is only to protect the capital if the stock does not fall below a certain level for a certain period of time.The controller had secured investment products has on his radar after a review in 2009, products of Lehman Brothers revealed that sales advice either inaccurate or cases.But misleading in two thirds of sales of structured products had risen since the credit crunch again with a 48 percent increase in sales in 2009 over 2008, according to the website Structuredretailproducts.com.The UK retail market was worth £ 52 billion at the end of year 2010, against £ 46 billion before one year. The FSA said it had prior to new rules for evidence that their current guidelines introduced in 2001, has not taken to introduce works.? We already have a rule that companies need a fair, clear and not misleading? But in many cases we have? re find it? s not? FSA said.Structured products have been behind some of the largest fines imposed by the supervisory authority in recent months, including a £ 1.4m fine to the Company of Norwich & Peterborough building in April for mis-selling of investments and fined £ 700 000 RSM Tenon year.Some last independent financial advisers were also front of individual fines, because they explain the risks of the products correctly. A hearing on the proposal is open until August 6.The FSA plans, the results of an investigation, such as structured products are sold and marketed to consumers later this year, is expected to suppress the practices publish sales Financial Times Limited further.Copyright 2011th You can share with our tools section. Please do not cut articles from FT.com and distribute via e-mail or by post to the Internet. Founded

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The Shaw Group Inc. in 1987 as a fabrication shop in Baton Rouge, Louisiana, the chairman, president and CEO JM Bernhard Jr. and two colleagues. Driven by leaders with bold vision and a strong entrepreneurial spirit, the company has a diverse engineering, construction, technology, manufacturing, environmental and industrial services organization with 27,000 employees in strategic locations throughout the developed world.