Investec has launched its latest collection of structured products [in the UK], adding a risk control feature to some plans and bringing RBS on board as a counterparty.

This collection sees the launch 15 new Investec plans, and includes the FTSE 100 enhanced kick-out plan 10, the FTSE 100 kick-out deposit plan, the FTSE 100 income deposit plan 8 and the FTSE 100 bonus income plan 5.

"We have improved some of the terms but we have also added RBS as an asset provider, to join Lloyds, which meant we could improve those terms further," said Gary Dale, intermediary sales - derivatives and structured products at Investec, based in London. "In addition, we have added a risk management feature to some of our products where, if the barrier is breached, capital is only lost on a 1:2 basis. We added the risk management feature as a market test and it has done well."

Using RBS as a counterparty might seem like a brave move in light of the bank's recent government bailout and the negative press it has had, but Dale explained why Investec chose to use RBS. "Its rating is still pretty high and we wanted to try to build a portfolio of products where investors can diversify credit rather than just diversifying banks.
"We had to weigh up pricing and RBS offered the best price. We believe it is still a household brand, plus it is 84% government-owned, which adds extra security."