Structured product providers have merged to create the UK Structured Products Association.

The group will offer independent commentary on the broad range of issues involving structured products and their role in an appropriately diversified investment portfolio.

The last five years has seen significant growth in the structured products market in the UK, with more than £42bn in assets under management, which the UK Structured Products Association attributes to the products' role in diversifying portfolios and offer of a wider range of alternative investment solutions to retail investors.

The membership at launch consists of Citi, Credit Suisse, Legal & General, Morgan Stanley, Prudential, Royal Bank of Scotland, Santander and Skandia. A committee for independent plan managers and distributors is also being created by the Association, which will advise on matters such as the specific parts of the structured products industry.

Gilliat Financial Solutions, Jubilee Financial Products, Meteor Asset Management and Walker Crips Structured Investment will feature on the committee.

The Association was created by the members as they believe that while structured products are an integral part of financial planning, they can be misunderstood and misrepresented.

"The Association gives providers an opportunity to inform and educate the investment community, and we believe its efforts will help them to better understand how these products work and how they can be incorporated sensibly into a well constructed investment portfolio. The Association is a positive step forward for the UK structured products market. As a unified voice, it will offer commentary and insight covering all aspects of structured products and we are committed to the aims of the organisation," commented the UK Structured Products Association.

The Association will work with other organisations such as the Association of Independent Financial Advisers (AIFA) and the European Structured Investment Product Association (EUSIPA).

Robert Sinclair, AIFA director, added: "AIFA supports the launch of this initiative which will help ensure that all participants in this market are continually better informed."

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