Did you know that structured CD’s [certificates of deposit] are extremely complex products? A recent study indicated that on average, investors received only approximately94 cents of value for each dollar invested in structured CD’s![1]

Structured CD investors are told that they can gain access to the markets while reducing their exposure to market risk. However, the SLCG study concludes that the much touted ‘market related gains’ are minimal.

In addition, those investors who purchase structured CD’s bear the credit risk of the issuing bank as FDIC insurance is limited.

However, as apparent in a recent case handled by our office, for older structured CD investors, the primary risk is that of liquidity risk, because there is no public source for market prices for structured CD’s. Older IRA investors who may be required to make RMD’s [Required Minimum Distributions] may find that they have to accept a significant discount to sell their structured CD when they have unanticipated liquidity needs.

If you believe you have been the victim of an inappropriate CD investment call or email for more information and a free consultation about how to recover losses your portfolio suffered due to negligence, misconduct, or investment fraud by a financial advisor or brokerage firm, contact Attorney Howard Rosenfield at 860-677-4334 or email

Attorney Rosenfield is also available to speak on specific subject matter topics related to advisor negligence, misconduct, or investment fraud.