Structured Products - Fundamentals

Structured products have become an important component of modern investment solutions, offering tailored risk-return profiles to meet diverse investor needs and market conditions. As their use continues to grow across private banking, wealth management and investment services, professionals need a clear understanding of how these instruments are structured, their key features and the risks they may involve.

This training provides the essential foundations to understand structured products and their role in today's financial markets.

At the end of this training, you will have a first insight into structured products, having explored:

• What they are and how to identify them.

• The main families of structured products and their objectives.

• The role they play for issuers.

• Their advantages for investors.

• A brief history of their development.

• Ttheir terminology and key vocabulary.

• The different stages of their launch and the parties involved.

• The European regulatory framework governing them.

• The underlying assets on which they can be built.

• The risks inherent to them.

• A quick overview of how most of them are constructed.  
  

History and development of structured products

• Origins and key milestones in the evolution of the market

• Main growth phases and current market size

• Recent trends and outlook

Definition of a structured product

• What a structured product is and how to identify it

• Main components (underlying asset, payoff structure, protection mechanism)

• Difference with traditional financial instruments (bonds, funds, derivatives)

• Credit and counterparty risk, liquidity risk...

Types of structured products

• The main families and their objectives (capital protected, yield enhancement, participation, etc.)

• Examples of typical payoffs (autocallable, barrier reverse convertible, etc.)

• Risk classification of structured products and main type of risk profile

Stakeholders in the structured products industry

• Issuers, arrangers and distributors

• Service providers (trustees, calculation agents, exchanges)

• The end investor

Role of structured products

• For investors: diversification, protection, tailored risk-return profiles

• For issuers: funding, client engagement, market-making

European regulation of structured products

• Key frameworks (MIFID II, PRIIPs, Prospectus Regulation)

• Investor protection and disclosure requirements

• Risk classification and target market assessment

Possible underlying assets

• Equities, indices, baskets and baskets of stocks

• Interest rates, FX, commodities and funds as underlying

• How to combine underlyings and use them in portfolio management

This training is aimed at anyone new to structured products who wants to discover these instruments.

The typical profile is a beginner or non-specialist with basic financial knowledge, for example professionals from other departments (legal, compliance, operations, marketing, HR), career changers, or client-facing staff who need an overview of the business.

The level required is basic financial literacy: no prior knowledge of structured products is needed.

To further develop your knowledge and skills in this area, we invite you to explore the additional training certification listed below, organised in collaboration with our partner Luxsipa (Luxembourg Structured Investment Products Association).

Understanding Structured Products Certification – Intermediate

Understanding Structured Products Certification – Advanced  

This training is offered in blended-learning, you will receive access to a preparatory course in e-learning 5 days before the course.

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examination sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.