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Structured products: counterparty research

Structured products: counterparty research

Recognising material advances in the UK structured products sector, professional adviser research, and in the regulations of the global banking sector  

– ILP Moneyfacts will now be publishing the Tempo ‘TICS: Counterparty Banks Side-by-Side View’  each month

– which can also be accessed through the Best Price Financial Services website:  https://bestpricefs.co.uk/structured-products/tics/

National publication, ‘Investment, Life and Pensions Moneyfacts’, have just published an article in April, regarding an important aspect of structured products, provided by Chris Taylor, global head of Tempo Structured Products.

The article highlights the importance of understanding counterparty risk when investing in structured products and explains the material advances in professional adviser counterparty research and the changes in the regulations around the banking sector, including the introduction of certain banks being identified and regulated as ‘G-SIBs’ (global systemically important banks) and the general strengthening of the banking sector, following the global financial crisis.

As the article says, ”Let’s be clear, counterparty risk is the most fundamental risk of a structured product: both the potential returns of a structured product and the repayment of capital invested usually depend upon the financial stability of the issuer / counterparty bank throughout the investment term’‘.

CLICK HERE to access the Moneyfacts April magazine (the article was profiled on the front cover and can be found on pages 10/11)

CLICK HERE to access a clipping of the article

The article also highlights the availability of ‘TICS’ (the Tempo Issuer and Counterparty Scorecards) and the ‘TICS: Counterparty Banks Side-by-Side View’, which Tempo provide as part of its best practice research support for professional advisers.

Moneyfacts will start publishing the ‘TICS: Counterparty Banks Side-by-Side View’, in their magazine each month, starting in May.

CLICK HERE to see what the page will look like

Importantly, the ‘TICS: Counterparty Banks Side-by-Side View’ can also be found via the Best Price FS website … which we have been making available to investors for some time now.

Notably, this means that the only places that investors can find and access Tempo’s ‘TICS: Counterparty Banks Side-by-Side View’ is via Moneyfacts and the Best Price FS website.

In addition, the Best Price FS website also provides investors with access to Tempo’s individual ‘TICS Reports’, which Tempo produce every month for approximately 15 major banks (covering the main issuers / counterparties behind retail structured products in the UK).

CLICK HERE to access the Best Price FS website and the TICS resources provided for investors.

Tempo clearly raised the bar with regard to counterparty research and support for professional advisers using structured products with their clients.

We’re pleased to see Moneyfacts cover this fundamentally important aspect of structured products in this article and to also now include the ‘TICS: Counterparty Banks Side-by-Side View’ in their publication each month.  To our minds, the more high quality information regarding structured products that is provided for investors the better.

We will also circulate a link to the updated TICS area of our website each month.

We would encourage investors to find and take a few minutes to give the Moneyfacts article a read.

Best regards

Richard and the Best Price FS team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.