Joint Associations Committee Releases Combined Principles for Retail Structured Products

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For Immediate Release

Joint Associations Committee Releases Combined Principles for Retail Structured Products 

LONDON, Monday, May 23, 2011 – The Joint Associations Committee on Retail Structured Products is pleased to announce it is reaffirming the set of principles for managing the provider-distributor relationship (PD Principles) in retail structured products and the principles for managing the distributor-individual investor relationship (DI Principles), originally published in July 2007 and July 2008 respectively.

The Principles were drafted with the intent of achieving fair treatment for individual investors and clarifying the respective roles and responsibilities of the various parties involved in the creation and distribution process. The years since 2008 have seen increased recognition by governments and regulators of the importance of a vibrant and well-functioning retail structured products market.

A combination of demographic trends and the impact of the financial crisis have resulted in a greater onus on individuals to take responsibility for their long-term financial planning and, in particular, to make private financial provision for their retirement. Retail structured products will play a key role in meeting such increased investment demand. However, the financial crisis has also impaired investor confidence. Such considerations have led to regulatory initiatives designed to improve investor protection in multiple jurisdictions.

While originally published before the financial crisis, the Principles address many of the same issues as those sought to be addressed by such initiatives and it is in this context that the JAC feels that now is an appropriate time to re-release the Principles in order to both encourage their usage and help inform the current debate.

Tim Hailes, Chair of the Joint Associations Committee, said: “The JAC is extremely supportive of the regulatory initiatives undertaken to improve investor protection and is fully committed to working with governments and regulators to facilitate positive consumer outcomes. The JAC has been an active participant in the consultation process in multiple jurisdictions and looks forward to continuing participation in these important discussions.”

He continued: “Each set of Principles is the result of long and careful deliberation, which the sponsoring associations believe has contributed to their continuing and broad relevance. The associations accordingly welcome further expressions of support for the Principles from financial-services industry groups, as well as continuing dialogue with all interested regulatory and legislative bodies.”

For More Information, Please Contact:
Deirdre Leahy, ISDA New York, +1 212 901 6021,

About the Joint Associations Committee
The JAC is sponsored by multiple associations with an interest in structured products, including the International Swaps and Derivatives Association (ISDA), the International Capital Market Association (ICMA), the Association for Financial Markets in Europe (AFME), the British Bankers’ Association, the Asia Securities Industry & Financial Markets Association (ASIFMA), SIFMA, the Associazione Italiana Intermediari Mobiliari (ASSOSIM) and the Institute of International Finance, Inc. (IIF).The members of the JAC comprise most of the major firms (both financial institutions and law firms) involved in the creation and, to some extent, distribution of structured securities which are distributed to retail investors.

About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA is one of the world’s largest global financial trade associations, with over 800 member institutions from 56 countries on six continents. These members include a broad range of OTC derivatives market participants:  global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouses and other service providers. Information about ISDA and its activities is available on the Association’s web site:

ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc.

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