Structured products are rising in popularity and we are concerned that the growing number of structured product sales, as well as increasing product complexity, is placing a strain on firms’ systems and controls. A lack of robustness in firms’ product development and marketing processes can increase the risk of poorly designed products and lead to miss-selling ,or miss-buying by consumers. The environmental drivers of risk remain broadly the same as those outlined in our Retail Conduct Risk Outlook 2011(the RCRO)2, although the risks of slow economic growth have increased since the RCRO was published in February 2011. Many asset classes are still volatile. Consumers respond to volatility by seeking security, but are constrained by very low or negative real yields on traditional savings and investment products. This leads consumers to be attracted by products that claim to offer a degree of security but which promise returns that outperform cash. Firms have responded by manufacturing and marketing products that aim to deliver better-than-cash returns. In many cases, both the benefits and the risks of these products are opaque.