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Structured Deposit (Information to be disclosed (details of product…
Structured Deposit
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Common Risks
Credit risk
default of deposit taking bank, structured deposit is not protected under Deposit Insurance scheme
Reinvestment risk
if structured deposit got redeemed earlier before maturity, may have to find and invest in less attractive interest rates
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Early Withdrawal
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valuation of underlying funds is periodic, so investor cannot withdraw deposit immediately
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What is it?
A combined deposit and investment products where returns are based on performance of underlying asset
Common features
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banks can redeem deposit early, full principal will be returned
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meant to be held to maturity, prinicpal will only be paid full at maturity
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Financial Advisers' Act
only Financial Adviser Representatives and Representative of Exempt Financial Advisers are allowed to provide advisory services
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