Five investment industry trade associations today released a draft of principles that aim to address the distribution of structured products.

The global, non-binding, principles are designed to address a wide range of issues affecting distribution of structured products to individual investors and complement the principles focusing on the provider-distributor relationship, which were released in July 2007.

The principles are the product of a coalition of trade associations that form the Joint Associations Committee, which comprises: the European Securitisation Forum, the International Capital Market Association, the London Investment Banking Association, the International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association. The principles were based on collaboration with the associations’ member firms, and on consultation with distributor associations.

“These global principles reflect collective industry expectations of integrity, professionalism, and ethical conduct in the retail structured products market,” said Timothy Hailes, managing director and associate general counsel at JPMorgan Chase in London who is chairman of the working group that developed the principles. According to Hailes, “The principles provide common sense guidance on how firms can continue to enhance services targeted toward a growing number of individual investors.”

The JAC invites public comments on the principles until June 16.