Australia: ASIC releases reports on capital protected products

ASIC has released two reports on ‘capital protected’ and ‘capital guaranteed’ investment products: a report that ASIC describes as a ‘health check’ on the capital protected and capital guaranteed products market (Report 340); and a research report into retail investors’ understanding of those products (Report 341).  These reports echo, and are a timely reminder of, a number of the themes from ASIC's 2010 "Review of disclosure for capital protected products and retail structured or derivative products", and confirm that capital protected and capital guaranteed structured products remain on ASIC’s radar.  Structured product issuers and advisers should familiarise themselves with these reports, and revisit their use of ‘protected’ or ‘guaranteed’ labels, particularly where the protection or guarantee is subject to conditions.   To read our fuller briefing, click here.