Structured products: IFAs urge FSA to rule on provider communication

This view was echoed by David Dixon (pictured), owner of Bradford-based Ebor Asset Management, who favours providers such as Investec and Cater Allen for structured deposits.

‘There’s so much happening at the moment and so much information to absorb that it’s very easy for us to miss [these things],’ he said. ‘A downgrade is a very important feature.’

He said more information seemed to be available about new issues, and he made a point of visiting providers’ websites regularly to keep informed.

Whose responsibility?

Newman said additional information from providers would be useful for kick-outs and fixed-term products to help ease advisers’ administrative burden.

‘Some of them send a note just before the kick-out anniversary, but it would be useful if they had a reminder of what the deal was, what it was linked to and what the index was at the start,’ he said.

James Harrington, head of business development at L&G, said the provider did have an obligation to give advisers sufficient information on an ongoing basis, but advisers also had a responsibility to do their own research.

‘IFAs need to carry on that due diligence over the life of the plan, in the same way they would review an investment portfolio of collectives,’ he said.