Structured Products can be a useful addition to investors' portfolios.
Structured products are used by many investors to achieve defined returns and a certain level of protection against market falls. There is a range of different products available to UK retail investors, and no standard naming convention. Often, the same type of product will be marketed under a different name by different providers.
UKSPA has therefore created a series of Product Codes, broken down into four main sectors: Protected, Non-Protected, Growth and Income. These codes are intended as a reference guide, to help advisers and investors understand what the different types of product are and their key features. Please look out for our logos and Product Code numbers on our members' product brochures, and refer back to this page to find out more information.
Please note that the information contained in these pages is for information only, and investors must still read the literature for a specific product in full before making a decision to invest in that product.
This sector includes products that offer a potential income stream during the term of the product, plus full repayment of capital upon maturity (subject to counterparty risk).
1140 - Protected Conditional Income
1180 - Protected Range Accrual Income
1198 - Protected Income - Other
This sector includes products that offer a potential income stream during the term of the product. Capital is at risk at maturity if the Underlying closes below a certain level. Because of the additional risk to capital, the potential income on offer from Non-Protected Income products should be greater than that from Protected Income products.
1230 - Fixed Income
1280 - Range Accrual Income
1290 - Conditional Income
1299 - Income - Other
This sector includes products that offer a potential growth return to be paid when the product matures along with the repayment of capital in full (subject to counterparty risk).
1100 - Protected Uncapped Growth
1120 - Protected Capped Growth
1150 - Protected Digital
1160 - Protected Kick Out
1170 - Protected Range Accrual Growth
1199 - Protected Growth - Other
This sector includes products that offer a potential return at maturity, depending on the performance of the Underlying. Capital is at risk at maturity if the Underlying closes below a certain level. Because of the additional risk to capital, the potential return on offer from Non-Protected Growth products should be greater than that from Protected Growth products.
1320 - Uncapped Growth
1370 - Capped Growth
1260 - Kick Out
1270 - Digital
1285 - Range Accrual Growth
1399 - Growth - Other