UK Structured Products Association joins the Joint Associations Committee
The UK Structured Products Association is to join the Joint Associations Committee, and in doing so sign up to JAC principles.
These principles are intended to ensure consumers are treated fairly and kept properly informed by product providers. They include:
– The recipient of a financial service or product should be in a position to understand the service or product in all material respects including its risk-reward profile or be represented by an agent who can understand the service or product.
– The decision to buy a financial service or product should not be influenced by a material conflict of interest on the part of the provider or distributor/adviser.
– A recipient of personal recommendations should expect the provider to take reasonable care in the provision of that investment advice.
Tim Hailes, chairman, Joint Associations Committee, said: “The addition of the UK SPA as a co-sponsor of the JAC comes at a critical juncture for the structured products markets in the UK and European Union. The advent of significant change in the UK next year with the creation of the successor organisations to the FSA, and the culmination of the Commission’s work on PRIPs and the MiFID review in the autumn, means that we are at a major regulatory inflection point for the market.”
“The JAC can only be strengthened through the engagement of a broad alliance of industry participants and we warmly welcome the support of the UK SPA as part of that process.”
The JAC committee is made up of 11 industry associations.