Banks followed wirehouses where 37 per cent of advisors said they offer them to clients. Meanwhile only 13 per cent of RIAs use structured investment products in client portfolios, Cogent found.

The survey comes almost two years after the bankruptcy of Lehman Brothers, an event that hit the structured products market because the US investment bank had been a leading provider and guarantor of such products. Its demise turned a sharp spotlight on the issue of counterparty risk embedded in such investment vehicles. The huge losses of AIG and problems at other banks also hurt the sector, although it has shown signs of recovery in regions such as Europe.

Advisors with higher assets under management tend to embrace structured investment products more, the Cogent report said. Sixteen per cent with AUM below $25 million say they use them, while 37 per cent with AUM of more than $100 million offer them.

Tenure is less of a correlating factor than AUM. One-fifth of advisors with more than 20 years of experience are recommending these products, while about 29 per cent of advisors with less than five years offer them.

“As a result of ongoing issuer risks, more and more firms have been tinkering with the design of these products to re-engage advisors,” according to Cogent. “However, based on our 2010 Advisor Brandscape results, not all advisors are taking notice.”