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.
German: Strukturierte Produkte (764)
Source: SFO D15 2010 m. e. E., 24.04.2010
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