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.