JPMorgan proposes industry standard for U.S. retail structured products

By Sheri Kasprzak

New York, Dec. 1 - JPMorgan Chase & Co. said it wants to create a standardized classification system for U.S. retail structured products.

The investment bank submitted a proposal to the Structured Products Association to create a system that would allow investors to separate prospective investments by features. The company expects a pilot program to be implemented in 2007.

"We have found that a significant hurdle to increased acceptance of structured investments in the United States is the difficulty for investors to compare products among different providers and we want to help change that," said JPMorgan's vice president of structured investments, Scott Mitchell, in a news release. "A classification system with standard definitions will better serve investors as they learn about these products."

According to Keith Styrcula, chairman of the Structured Products Association, many investment firms have proprietary names for their products, and JPMorgan's proposal will lend more transparency to investors.

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