IOSCO Consults on Regulation of Retail Structured Products (with Lofchie Comment)

The International Organization of Securities Commissions ("IOSCO") published a consultation report which analyses global trends in the retail structured product market and proposes a regulatory tool kit ("Toolkit") for IOSCO members.

Lofchie Comment: The report itself is interesting for its description of the retail structured products market around the world. There is very little of the report about the United States market. Starting at around page 37 is the description of the so-called regulatory Toolkit. Some proposed tools however, may have negative consequences for the market, such as a suggested post-sale "cooling off" period, which could do a lot to undermine legal certainty.Leaving aside the specifics of the report, I remind readers that FINRA leadership has emphasized structured retail products several times as a cause for concern; one reason to read the report is simply to refocus one's attention in this area. See, for example, this related news item: FINRA Chairman and CEO Ketchum Speech: Primarily on Suitability and Structured Products (with Barrentine Comment).

See: Consultation Report - Regulation of Retail Structured Products.See also: Press Release.