Structured products trade associations draft retail structured products principles

By Sheri Kasprzak

New York, April 19 - Several international structured products trade associations have drafted a set of principles to manage the relationship between providers and distributors.

Robert Pickel, chief executive officer of the International Swaps and Derivatives Association, Inc., said the initiative is intended to make products clear from the point of pricing, rather than from the point of sale as the United States' Structured Products Association has been attempting to do.

The rules may have little direct impact on U.S. structured products in particular, Pickel said in an interview Thursday.

Even so, the principles do address some concerns raised by distributors on panels at the Structured Products Association's recent annual conference in New York.

In particular, the principles would address ways to help distributors understand the products they distribute.

The principles also address internal approval processes for retail structured products, in particular addressing both product structuring and distribution.

"We'll be working closely with regulators and will be revisiting this many times," Pickel said. "It's not like we've just come up with these rules and are abandoning it."

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