In a nutshell
The debate on investment regulation is often legally biased with poor economic foundation. The current publication deals with the new wave of regulation on structured products following the financial crisis of 2008.
While previously all UCITS were considered “non-complex” the new regulation considers all structured UCITS ‘”complex”. The change in classification triggers a different procedure to buy structured UCITS.
The publication proposes a simple set of objective criteria, inspired by basic economics, to categorize any structured product into a limited number of product types. Sharing the concern for investor protection with the regulator, the publication criticizes a mere dichotomy.