Breaking the chains

The need to diversify customer credit risk and the rising importance of fiduciary standards make open architecture distribution vital to structured products’ future. As advisers become concentrated in bigger institutions and market volumes remain static, can the industry afford to ignore the open model? By Sophia Morrell

The structured products distribution model in the US is skewed. Captive channels held within the brokerage arms of a handful of major banks have traditionally stayed relatively closed. Third-party broker dealers, by contrast, have taken products from all issuers, adopting the same approach as independent registered investment advisers (RIAs), which answer only to their own due diligence requirements.

A gradual shift towards open architecture on the part of the biggest distributor banks has been

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here