This post was written by Chris Borg and Tom Webley.
The UK’s Financial Conduct Authority (FCA) has published its Occasional Paper No. 9, setting out the results of the FCA’s research into how well customers understood structured products. The answer, according to the report, is not very well. The report found that, while investors’ expectations of growth in the FTSE were in line with the FCA’s assumptions, investors overestimated the likely returns on structured products based on the same indices.
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