Escaping the fees maze

Fee transparency in structured products is a subject of heated debate and a target for critics' accusations of over-complexity. However, fees are disclosed with more candour than is usually assumed. Matt Cameron examines the charges levied on products, how they are revealed and just how issuers make their money

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Detractors of structured products can often be heard asserting that the investments are not transparent, display poor fee disclosure and resemble so-called 'black boxes'. In reality, however, fees are disclosed with a great deal of transparency and openness. Third-party distributor fees can be found on almost all term sheets in Europe, the US and in most other countries. More often than not, a maximum percentage charge is detailed as well, and in some cases the entire fee is stated explicitly

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