Introduction to Structured Products

Structured Products offer investors the opportunity to purchase investments with exposure to a specified underlying asset class such as a basket of shares over a period which matches with their investment strategy. Structured Products have a preset formula for calculating risk and return. In other words, you know the potential risk and return from the outset of your investment.

Primary and Secondary Market

Similar to an IPO (Initial Public Offering), there is a primary market for Structured Products where investors can invest for a period before they are made freely available to buy and sell on a secondary market bourse such as the LSE (London Stock Exchange). On the primary market investors will pay a fixed price known as the ‘par’ value. Once available on the secondary market the Structured Product is available to buy and sell much like an ordinary share and the price will rise and fall based on the value of the underlying asset class on which it is built. It will remain on the secondary market until it reaches the term period agreed from the outset and expires.

When you purchase a structured product, whether in the primary or secondary market, it is important to remember that you are exposed to the credit risk of the issuer. Interactive Investor has partnered with two of the leading providers on the market, Societe Generale and Investec, for the issue of Structured Products. If the issuer becomes insolvent, you could lose some or all of your investment. Furthermore, if you sell the product before the end of the term, you may receive less than you invested, so it is highly important to read and fully understand the risks involved before investing in this type of financial instrument.

Investing in Secondary Market Structured Products

Existing Customers

  • Login to your investment account
  • Under 'account admin' complete the appropriateness test by selecting 'Add the ability to trade complex products' link
  • Then use the ‘Buy’ button above relating to the product you wish to invest in

New Customers

If you have any queries or wish to place an order for a Primary Market Structured Product call our team on 0845 200 3637

Primary Market

There are currently no new Structured Products available.

Secondary Market

Name Provider Product Type Underlying Investment Expiry datesort icon Further info Price
AUTOCALL 7.2% (SPI1) Societe Generale Step-down FTSE 100 15/01/19
STEP-DOWN AUTOCALL 13% (SG04) Societe Generale Step-down Basket of Stocks 31/05/19
Income Builder (Memory) 14% - SG05 Societe Generale Income Builder Basket of Stocks 01/07/19
Quarterly Income Builder 2% (SG06) Societe Generale Income Builder Basket of Stocks 02/09/19
Autocall 7.8% (SG07) Societe Generale Step-down Basket of Indices 01/11/19
TOC1 - STEP DOWN AUTOCALL 12.6% Societe Generale Autocall Basket of Stocks 04/12/19
UK DEFENSIVE AUTOCALL 7.3% (SG93) Societe Generale Defensive FTSE 100 11/12/19

Risk Warning

Structured Products may not be suitable for you. It is important that you understand their nature and risk prior to investing. If you are at all unsure, please discuss them with a qualified advisor. The price and value of investments and any income paid fluctuates and you may get back less than you invested. Many structured products do not pay an income - please check the product details before investing if income is important to you. Remember that the favourable tax status of these products may change in the future and that how an investment performed in the past is not necessarily a guide to how it will perform in the future.