Seeking simplicity

Almost a year after the collapse of Lehman Brothers, German retail investors are again becoming comfortable with products from US investment banks. This means that domestic players will need to fight hard to retain their increased market share as the summer lull comes to an end. Michael Marray reports

The distribution system operating in the German structured products market ensured that the Lehman Brothers collapse in September 2008 caused more upheaval than was the case in many other countries. Unlike the highly concentrated UK or French markets, where mass-affluent investors often buy products direct from banks with which they already have a relationship, the German distribution system has historically been open to third-party providers.

Co-operative and savings banks distribute products