UK based structured product specialists FVC has rolled out an offshore version of its Structured Edge research service, which is free to access for financial advisers.
FVC enables advisers to evidence a selection process through scores, risk metrics and probabilities of outcomes from both simulations and back-testing which are calculated from FVC's quantitative methodology.
The new service is targeted at the offshore market to enable advisers to compare such products using the methods that have been available in the UK. With increasing regulation and governance worldwide it is essential that advisers provide their clients with the best service, according to Tim Mortimer (pictured), managing director of FVC.
This service is being launched with the participation of Investment Design & Distribution (IDAD), one of the longest standing and most successful distributors of structured products in the offshore market. Other distributors are also expected to join the site very soon, said Mortimer.
Mortimer also said that structured products are popular in the offshore market because of capital protection mechanisms and ability to generate yield in flat or modest markets.
"This service allows advisers to bring the benefits of this investment class to their clients by selecting the most appropriate products for them," said Mortimer, adding that the service will help to provide to best practice and full transparency for advisers and the clients they serve.
According to Mortimer, this development is a natural evolution of the service FVC has provided to the UK market for many years. “We have been in talks for some time now with a number of offshore providers seeking to satisfy new best practice regulatory requirements across different regions,” said Mortimer. “The offshore market is very variable and we believe this service will help to identify the good and bad products out there, and help advisers with their selection process. Doing the right thing for the end client will ultimately help advisers commercially as well as evidence best practice.”
Offshore specialist structured products provider IDAD, made its first foray into the UK retail market with the launch of the Dual Index Defensive Autocall September 2017, in September 2017. The defensive knockout product linked to a basket of indices (FTSE 100 and Eurostoxx 50) was hedged by Commerzbank and was sold via platforms, and outside the traditional plan management set up most issuers use in the UK market to sell structured products.
Prior to its launch in the UK retail market IDAD sold nine private banking structures and hundreds of products aimed at international investors in the offshore market.
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