Finra’s Ketchum Says Structured Products Are ‘Areas of Concern’
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Structured products are “areas of concern” for the Financial Industry Regulatory Authority, said Richard Ketchum, head of Wall Street’s self-funded regulator.
Brokers who sell structured products, which are securities created by banks that package debt with derivatives as customized investment bets, must “truly understand the products they sell,” Ketchum said today at the regulator’s annual conference in Washington. Sales of structured products rose 46 percent last year to a record $49.5 billion, according to data compiled by Bloomberg.