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PRESS ROOM

Continuing Professional Development (CPD) credits for Boost ETP Educational materials & events

Thursday 24th October '13

BOOST ETP, the award winning and independent Exchange Traded Product (ETP) provider, has announced that it will now be issuing Chartered Institute for Securities & Investment (CISI) Continuing Professional Development (CPD) credits for all Boost ETP educational material and events.  

BOOST has designed simple and easy to understand educational tools for anyone wishing to learn how to invest in a Short or Leveraged (“S&L”) ETF or ETP.  BOOST believes that the continued exponential growth of the ETP market will be a function of investor understanding of this market. The major focus of BOOST’s marketing will be focused on providing value-added events and educational tools to help investors, advisers and investment managers understand the benefits, risks and structures involved in the ETP market.

CPD is mandatory for members who are, or are looking to become, Chartered Wealth Managers, Individually Chartered, or members who are affected by the Retail Distribution Review (RDR). The CISI stipulates a minimum of 35 hours of logged CPD per annum on the CISI CPD Scheme or the CISI Accredited Firm Scheme.

BOOST, who now has 36 products listed on the London Stock Exchange, firmly believes in providing investors the educational tools and thought leadership required to understand ETPs generally and specifically S&L ETPs.  BOOST’s educational tools include the following:-

·         Short & Leverage ETF/ETP Adviser Tutorial and Test

·         Short & Leveraged ETF/ETP Adviser Tool Kit

·         ETF/ETP Short & Leveraged Returns Simulator

·         Educational Fact Sheets

·         Detailed FAQ section

·         Boost Educational Seminars, Teach-ins and Conference Calls

The educational materials have been developed in response to a number of concerns by global regulators regarding the use of leverage by investors who may not fully understand the risks involved.  In Europe, ESMA and the EBA are concerned that during the current period of low investment returns, inexperienced retail investors across the EU are being tempted to invest in complex financial products (such as CFDs and spread bets), which they may not fully understand and which can end up losing them money they cannot afford to lose. BOOST’s focus on education should help ensure that advisers and investors better understand the risks and benefits of S&L ETPs and also clearly show how the products are, in many ways, a means to gain leverage exposure. When compared to other leverage products such as structured products, CFDs, spread bets, warrants etc., S&L ETPs have some distinct advantages such as:

·         Lower leverage factors, for example CFDs/Spread Betting can be upto 20x leverage compared to a maximum of 3x for S&L ETPs

·         S&L ETP investors can’t lose more than their original investment whereas CFDs/Spread Betting are subject to margin calls

·         S&L ETPs are exchange traded and liquidity is provided by multiple market makers whereas  CFDs/Spread Betting are trades against the provider only

·         S&L ETPs have physical collateral to help protect against counterparty risk whereas CFDs/Spread Betting providers have no such protections

Hector McNeil, Co-CEO of BOOST commented: 

“When we set up BOOST we decided to focus on S&L ETPs as we felt the product is the best of breed to trade leverage and short investments. The challenge we felt was to educate investors and advisers as to the benefits and risks. We felt education is the best way to achieve this. With the ability to award CPD credits BOOST’s customers can now learn about S&L ETPs and gain regulatory credits at the same time.

At BOOST we believe whole heartedly in the ETP market and feel the UK market will follow the US ETP market in growth. Currently ETP assets under management are under 4% of total mutual fund assets and in the US it’s above 11%. For the UK and Europe to grow, we believe education is key. We have worked hard to get the CPD accreditation and we feel it will be a massive step in BOOST’s aims. We would ask any investment professional to visit boostetp.com and look at all the educational opportunities we have available. We are also open to working with third parties who have similar aims.”