Tempo Structured Products

‘Redefining Structured Products’ Masterclasses

Insights from Professional Adviser Feedback

During September, we ran the CISI CPD accredited Tempo Masterclass programme, ‘Redefining Structured Products for Professional Advisers’, in 10 locations around the UK: Glasgow, Manchester, Birmingham, Exeter, London, Reading, Harrogate, Bristol, Gatwick and Newmarket.

The Masterclasses explained why and how Tempo is redefining structured products for Professional Advisers, with details of important regulatory requirements and expectations, and bar-raising support and resources for advisers such as our Tempo Issuer & Counterparty Scorecards (‘TICS’).

Attendee feedback from the Masterclasses has provided an illuminating insight into the views of a cross section of advisers, including advisers using structured products as well as those who did not.

Views of structured products: pre and post Masterclass attendance

40% of attendees said their firm did not use structured products.

Almost 60% of attendees said they did not use structured products personally.

However, almost 80% of attendees said they felt more confident in the sector today, following regulatory scrutiny and more prescriptive rules over recent years.

And following the Masterclasses, 100% of attendees stated that best of breed structured products could potentially add value within client portfolios.

Adviser consideration of a more challenging investment environment

The increased confidence in structured products is important, given attendees’ views of the investment environment and the challenges for portfolio construction.

97.6% of attendees stated that they believe the investment environment will be more challenging in the next decade than it has been in the last decade. 

Structured products offer features that neither active nor passive funds offer, including the ability to generate positive returns that do not require the stock market to rise, with a defined level of protection if it falls. At a time when many advisers and investors do not expect markets to continue rising so strongly as they have been since the financial crisis, and are concerned about the possibility of them trading sideways or falling in the years ahead, incorporating products that do not require markets to rise can help improve portfolio diversification for clients.

Awareness of regulatory responsibilities (MiFID II and PROD)

We were interested to know how confident attendees felt they were regarding regulatory rules and expectations, before they attended the Masterclasses:

Only 24% of attendees were confident that they were aware of general PROD requirements.

Less than 50% of attendeeswere confident that they understood the PROD requirement on distributors to consider the impact that the selection of a manufacturer could have on clients, focusing on the financial strength of manufacturers, including structured product plan managers.

Only 33% of attendees were fully aware that manufacturers are required to make advisers aware of their governance procedures, including appropriate information on product design development and approval processes.

Our Masterclasses highlighted how Tempo supports Professional Advisers in meeting their regulatory requirements. And we were encouraged that 80% of attendees said they were pleased to see an operationally strong provider enter the structured products sector, focusing on best practice governance.

Some specific feedback from attendees…

“Thank you for an entertaining and original presentation. I say this because it is possibly the first time in 36 years that I have attended an event where my clients’ considerations were put at the top of the agenda.”

“Very impressed that the majority of time was spent on the diligence and risk side rather than the usual ‘product pushing’ focus.”

“Delighted to see depth of research and how products have moved on – especially as my last involvement with these was in bank branch based advice…”

“I found the session very useful. Being new to structured products, it has given me more knowledge into how they work.”

“Simply the best presentation I have ever attended. Excellent speaker backed by impressive research data.”

Thanks … and further Masterclass opportunities

Many thanks again to all of the Professional Advisers who attended the Masterclasses and for their input and feedback.

It’s clear that our Masterclasses help re-set and advance adviser thinking about structured products, whether you are an adviser already using them or an adviser who hasn’t been.

Given the success of the events, we will run more Masterclasses around the country in coming months, and we would also be pleased to arrange these for individual firms and at IFA events / conferences.

Please contact us if you would like to attend a Masterclass, or to discuss any interest in structured products that we can help with.