Structured Product - Execution Only - Investec or Mariana Capital

darren72

I'm looking at taking out a structured product. Either the Investec Enhanced FTSE 100 Kick Out Plan or the Mariana Capital 10:10 Twin Option Kick Out plan.

I believe neither can be applied for directly and the application needs to be submitted via a financial advisor.

Is anyone aware of the cheapest way of doing this ? - A quick Google search revealed Cavendish Online at £35 or Money World at 0.5%.

Does anyone know of any others (cheaper), as I presume all they will be doing will be checking ID and submitting the application.

Thanks in advance

Al.

In principle, and not withstanding the unsuitability of the accompanied advice that Structured Products have been sold to most people, this might be a good time to consider a kick out plan.. if you're the right person for it of course.

I have a legacy client who did exceptionally well with a Bricks and Mortar plan, but she was the most unsuitable person for it, and FOS could have driven a double decker bus through the file. By luck, not judgement, she made, over 6 years, something like 8% pa.

But it all hinged on the luck of the draw, a month or two later and the adviser would have been getting a letter from the ombudsman I'm sure. I'm not averse to them as many others, but for a tiny minority of wealthy, aware clients who need to wring as much income out of a pot as possible. The two scenarios don't intersect very often.

Check the counterparty risk, and I suspect this'll fall on deaf ears, but please take advice - Structured Products have burned many - without the protection of advice, your ability to elicit effective redress is diminished. I wonder if any do EO any longer? This is a list of providers, and are you investing via a SIPP?

http://www.trustnet.com/Investments/SPGroupsList.aspx

darren72

Thanks for the reply and the details.

I've done a number of Structured Products and have been lucky to have been paid out up to 16%pa on them.

I always check the counterparty risk and never invest more than I am willing to lose.

Thanks again

darren72

Does anyone know if there are any alternatives to Cavendish Online that charge less than £35 for processing this type of application ? - I doubt it, but thought I would check first.

dunstonh

darren72 wrote: »

Does anyone know if there are any alternatives to Cavendish Online that charge less than £35 for processing this type of application ? - I doubt it, but thought I would check first.

SCARPS no longer have commission built in. So, either you buy direct or use an intermediary who will charge.

darren72

Thanks for your reply. Unfortunately most will no longer accept direct applications. I understand there will be a fee to pay, just wondering if there were others that charge either the same as or less than Cavendish do.

dunstonh

My gut feeling is no-one else will be cheaper as Cavendish only do it because of volume. Most intermediaries would have to follow the execution only process and that is just too much risk nowadays for little benefit.