Print Friendly, PDF & Email

Structured products are intended for short to medium-term investments and hedging. The current price depends on the development of the underlying asset. The investors enter into a creditor/debtor relationship with the emitting company (bank or broker) and acquire a legal entitlement to the development of the underlying asset (partial debenture). As with bonds, emitters of structured products disclose the income from the emission on the liability/equities side of the balance sheet as borrowed capital. The investor consequently assumes a certain credit, counterparty and consequently default risk when doing business with the emitter; this is known as issuer risk. Structured products are formally subject to CISA but are not specifically regulated. They may only be offered publically if they are issued, guaranteed and sold by supervised banks, insurance companies and securities dealers and if a prospectus is provided. They are not supervised by the state (FINMA) and do not require authorisation; investors are not protected as per CISA.

Term-Nr.: 819

German: Strukturierte Produkte (764)

Source: SFO D15 2010 m. e. E., 24.04.2010

Notice: The contents of this terminology collection Lawpedia® with a focus on business law (especially financial market law) have been researched with great care and compiled on the basis of an extensive flash card, training materials and literature. The various sources (as far as they could be found) can be found in the abbreviations and source references. References to other sources are welcome. Despite the care taken, the provider cannot accept any liability for the accuracy, completeness and topicality of the information provided. The information is of a general nature in particular and does not constitute legal advice in individual cases.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *