Structured Product Design represents an innovative field of financial engineering aimed at creating individual investment solutions in Georgia. These products typically combine traditional assets (shares, bonds) with derivative financial instruments (derivatives) to achieve specific risk and return profiles. With the growth of the capital market in Georgia, investment banks and management companies are increasingly interested in offering structured products to both institutional and high-net-worth private individuals. Designing structured products requires not only financial mathematics but also a flawless legal framework to ensure product legality, transparency, and investor protection. The Legal.ge platform connects you with leading financial lawyers who will assist in the legal design of complex investment products and regulatory compliance.
What does the Structured Product Design service cover?
Legal services related to structured product design cover all stages of product creation, from idea to market placement. The service includes: selecting the legal structure of the investment instrument (e.g., notes, certificates, or deposits); preparing information prospectuses and Term Sheets; legal validation of derivatives embedded in the product; legal description of capital protection and return mechanisms; compliance with the "Law on the Securities Market" and National Bank regulations; ensuring investor rights protection and information disclosure standards; and tax structuring, which is critical for product efficiency. Lawyers also help companies create Special Purpose Vehicles (SPVs) for the purpose of asset isolation.
Common real-world scenarios
In practical business activities, structured product design becomes necessary to solve various investment tasks. A typical scenario is the creation of "Capital Protected Notes," where the investor is guaranteed that the initial investment will not be lost, while profit depends on the growth of a stock index. A second scenario concerns "Dual Currency Deposits," allowing a client to receive high interest in exchange for currency exchange rate risk. A third scenario is the design of Asset-Backed Securities (ABS) when loan portfolios are securitized to attract capital. It is also common for investment funds to create specific products to finance energy or real estate projects. Each of these products requires detailed legal analysis to exclude unforeseen risks.
Georgian Legal Framework
The legal basis for structured products in Georgia is the Law of Georgia on the Securities Market. This law regulates the rules for securities emission, registration, and public offering. Also important is the Law of Georgia on Investment Funds, which defines the possibilities for funds to combine different assets. The National Bank of Georgia, as the regulator, sets rules for financial institutions selling structured products and informing clients. The Civil Code of Georgia is also used for general principles of contracts. A lawyer's role is to ensure the product is not classified as a prohibited financial scheme and fully satisfies transparency requirements.
Step-by-step process when working with a specialist
The creation of a structured product begins with concept development and financial modeling. In the first stage, the lawyer carries out a "Legal Feasibility Study." In the second stage, emission documentation is prepared, including the base prospectus and Final Terms. The third stage involves communication with the regulator (National Bank) for the purpose of product registration or authorization. In the fourth stage, distribution agreements for brokers and banks are prepared. The process ends with product launch and its subsequent legal monitoring. A specialist ensures that the entire procedure is transparent and protected from regulatory sanctions.
Why choose Legal.ge?
Structured products require a high level of financial and legal expertise combining capital markets and tax law knowledge. On the Legal.ge platform, you will find professionals who have successful experience in creating complex financial instruments in Georgia. Our experts will help you turn your idea into a real investment product that will be both profitable and legally flawless. Through Legal.ge, you have the opportunity to compare specialists according to their ratings and implemented projects. Find your legal advisor on Legal.ge and create innovative financial products with professional support. Our platform ensures a reliable partnership for your business development.
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