Case Study 3 – Structured Product

A private client had invested in a Structured Product linked to the performance of various funds managed by the same bank that had issued the product.

It was believed that the Structured Product had underperformed despite a rising market.

Analysis showed that the product had indeed underperformed. The underperformance was due to (a) high and opaque charges (b) undisclosed upfront profit by the bank on the original sale of the product and (c) undisclosed profit on early sale of the product by the private client.

After some negotiation, the bank agreed a settlement.