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Investec to exit structured product market

Investec Bank will pull out of the retail structured product sector in the UK retail market from April, the company revealed today.

Because of the exit the next batch of new structured products, being launched from 15 February to 1 April, will be Investec’s last.

The company says it is shifting its focus away from structured products towards services for financial advisers, including Discretionary Fund Management and Managed Portfolio Services (MPS) on platforms.

Investec has been one of the biggest players in the retail structured product sector and has been in the market since 2008.

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The company said current plans (including investments into Investec’s range of plans) are not affected by exit. They will continue to operate and preserve clients’ encashment rights. 

Investec will also continue to support all existing plans as they continue over the coming years.  

Investec said the move was “a reflection of its shift in focus to its core services for Financial Advisers: Discretionary Fund Management and Managed Portfolio Services on Platforms (MPS).”

In a statement today the company added: “We’ve made this decision for commercial reasons. Investec is a highly liquid bank and structured products are no longer the most efficient way for Investec to raise retail funding given the efficiency of our other retail channels where we offer a comprehensive suite of award-winning general savings products.

“Other factors in the structured products environment, such as persistently low interest rates and increased regulatory costs, have also contributed to this decision.” 

Investec operates in South Africa and the UK and other countries. Last year the asset management business was demerged and separately listed as Ninety One.

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