Industry questions FCA's structured products proposals
FCA's thematic review likely to result in greater use of stress testing to project structured product returns, sparking fears that investors could be misled due to the lack of standardised model
Moves by the UK's financial regulator that could see issuers of structured products increase their use of stress tests to illustrate a product's potential returns have drawn ire from the industry. Market participants fear that the lack of a standardised model among dealers and distributors to determine indicative returns will result in issuers offering different projections for identical products.
The Financial Conduct Authority (FCA) published its thematic review of structured products
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