Structured Products: Legal and Regulatory Materials

SEC Materials

FINRA Materials

2/21/2013 SEC Follow-up Letter to Sweep Letter Recipients re Estimated Initial Values
Letter contains the SEC’s updated guidance to issuers relating to the disclosure of estimated value of structured notes, including the discussion of the bond component and derivative component, secondary market values, related risk factors, and timing of conveyance of information. (Text of letter adapted from the SEC EDGAR website.)
8/2012 SEC Investor Bulletin: Exchange-Traded Funds
This investor bulletin discusses various types ETFs, factors to consider before investing in an ETF, the differences between ETFs and mutual funds, certain regulatory requirements, NAV and intraday value, premiums and discounts, and arbitrage.
4/13/2012 SEC Sweep Letter re Structured Products
The SEC sent this letter to certain financial institutions regarding their structured note offering disclosures in their prospectus supplements and Exchange Act reports. It addresses certain issues with products names, products pricing and value, use of proceeds and reasons for offerings, plans of distribution, liquidity, issuer credit risk, tax consequences, referenced asset/index disclosures, disclosure formats, and exhibits.
7/27/2011 OCIE Report: Staff Summary Report on Issues Identified in Examinations of Certain Structured Securities Products Sold to Retail Investors
This report looked at retail structured securities products business of 11 broker-dealers, covering a cross-section of the industry, for time period 2008 – 2009, and found that firms (1) recommended unsuitable structured securities products to retail investors; (2) traded at prices disadvantageous to retail investors; (3) omitted material facts about structured securities products offered to retail investors; (4) engaged in questionable sales practices with customers. In response, it recommends larger broker-dealers focus on: (1) having adequate procedures and controls to prevent and detect possible abuses in the secondary market; (2) disclosing material facts; (3) requiring registered representatives and their supervisors to complete specialized training before selling these products; (4) accurately listing structured securities products on customer statements; (5) having controls to independently review their desk prices of structured securities products in the secondary market; (6) having controls to adequately review suitability and customer concentrations.
6/2/2011 SEC/FINRA Investor Education Alert: Structured Notes with Principal Protection: Note the Terms of Your Investment
This investor education alert discusses the unique features of structured notes with "principal-protection," how these notes may protect investments and questions a potential investor should ask before investing.
8/18/2009 SEC/FINRA Investor Education Alert: Leveraged and Inverse ETFs - Specialized Products with Extra Risks for Buy-and-Hold Investors
This alert discusses the unique features of leveraged and inverse ETFs, addresses investor concerns confusion regarding the performance objectives of leveraged/inverse ETFs, and recommends research investors should conduct prior to purchasing these instruments.
10/12/2006 SEC on Equity-Linked CDs
This answer report discusses equity-linked certificates of deposit and advises investors to understand the specific terms and features of these products before making investment decisions.

Structured Products: Legal and Regulatory Materials SEC Materials

Structured Products: Legal and Regulatory Materials

SEC Materials