Advisers steer clear of structured products

“There is only about 5% or 10% penetration among advisers ... we need to eat more of our own cooking," said Keith Styrcula.

Structured products are clearly not for everyone, even advisers — a point that was underscored at the Structured Products Association’s annual convention in New York.
A survey by the association found that 40% of the more than 200 industry representatives in attendance do not invest in the derivatives-based products.
“That was very surprising to me, especially in an audience of structured-products professionals where I bet 100% of them have investments in mutual funds and equities,” said Keith Styrcula, chairman of the New York-based association.
“We know that there is only about 5% or 10% penetration among financial advisers, but we need to eat more of our own cooking.”
Mr. Styrcula, who included the survey question as part of a larger survey that asked attendees about a range of industry trends, suggested that “owning a structured product should be a distinguishing factor.”
“You should not be selling structured products if you’ve never bought one,” he said.