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

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