Efficiency and transparency of Primary Market for structured products, also considering Switzerland

Efficiency and transparency are critical factors in the primary market for structured products.

The primary market is the market where new securities are issued and sold to investors for the first time. Structured products, which are financial instruments that are customized to meet the specific needs of investors, are often sold in the primary market.

In order to ensure efficiency and transparency in the primary market for structured products, several measures need to be taken.

First and foremost, it is essential for issuers of structured products to provide investors with clear and concise information about the products they are selling.

This includes providing details about the underlying assets, the risks and rewards of the product, and any fees or charges that may be incurred. Issuers should also make sure to clearly disclose any conflicts of interest that may exist, such as when they are also acting as market makers for the product.

Second, it is important for there to be a fair and open process for distributing structured products. This can be achieved through the use of a syndicate of banks or other financial institutions, which allows for the distribution of the product to a wide range of investors. This can also help to ensure that the price of the product reflects the true market value, rather than being influenced by a single issuer or a small group of investors.

Third, there should be robust regulatory oversight of the primary market for structured products. This includes ensuring that issuers are compliant with all relevant laws and regulations, and that investors are protected from fraud and other forms of misconduct.

This can be achieved through the use of independent third parties, such as rating agencies and auditors, who can help to verify the accuracy and reliability of the information provided by issuers.

Finally, it is important for there to be transparent and efficient post-issuance processes for structured products. This includes providing investors with ongoing information about the performance of the product and any changes that may affect its value. It also includes having clear procedures in place for the redemption or sale of the product, as well as for handling any disputes that may arise.

In summary, ensuring efficiency and transparency in the primary market for structured products is crucial for protecting the interests of both issuers and investors.

By providing clear and concise information, using a fair and open distribution process, and having robust regulatory oversight, the primary market for structured products can be a safe and effective place for the issuance and sale of these complex financial instruments.

In Switzerland, structured products can be issued by a variety of financial institutions, including banks, asset management firms, and independent financial advisors. These institutions may act as issuers of structured products, creating and selling these products to investors.

Banks are among the most common issuers of structured products in Switzerland. These products may be offered by banks as part of their wealth management services or as standalone investment products. Banks may also act as intermediaries, working with asset managers and other financial institutions to create and distribute structured products to investors.

Asset management firms are another key issuer of structured products in Switzerland. These firms may create and sell structured products as part of their investment offerings, or they may work with banks and other financial institutions to distribute these products to investors.

Independent financial advisors may also act as issuers of structured products in Switzerland. These advisors may work with investors to create customized structured products that meet the specific needs and goals of their clients, or they may offer a range of pre-packaged structured products from various issuers.

In addition to these traditional financial institutions, there are also a number of online platforms and fintech firms that offer structured products to investors in Switzerland. These platforms may provide investors with access to a range of structured products from various issuers, or they may create and sell their own products

Online platforms and fintech firms may offer a convenient and efficient way for investors to access structured products, and they may provide a range of tools and resources to help investors understand and manage their investments.