Lehman Brothers customers

ericthekidstoner

anyone know what is going to happen to Lehman Brothers customers who have investment or pension products with them?

I'm kinda surprised Martin haven't written something about it yet

dunstonh

I'm kinda surprised Martin haven't written something about it yet

Probably as none of the people here have anything with them directly.

Grey_Squirrel

My wife has one month old a Structured Product from NDFA which she has just learnt was invested in a Lehman Brothers security. NDFA have absolved themselves from any legal responsibility and said that as it was Lehmans that are bankrupt she will not be compensated by the Financial Services Compensation Scheme.

dunstonh

There is a bit here on the NDFA structured products:

http://www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=314792

ChloeRadshaw

I actaully thought about investing in these kick out products last year - What is the status with the FSA and 35 k compensation?


I would have thought it was entirely covered for a residential customer

dunstonh

What is the status with the FSA and 35 k compensation?

There is no compensation from the FSA. The consumer protection comes from the FSCS but its at underwriter level. That means they have to underwritten by an FSA authorised firm (at least that is my understanding of it).

EdInvestor

Telegraph has a useful article on safety and compensation status of 'guaranteed products' and money market funds.

dunstonh

EdInvestor wrote: »

Telegraph has a useful article on safety and compensation status of 'guaranteed products' and money market funds.

The whole thing is still a grey area though with the comments being left vague on who is responsible. Even from those that should know, like the FSCS.

dahveed

Fact is NDFA made no mention of Lehmans in their brochure. They guaranteed 100% capital back with fixed income.Also stated they were covered by fsa. The brochure was designed to ensnare the cautious investor. Now we know none of their promises were true. They dont even know where they put investors money.I have lost about £21k with this lot and feel like ive been well and truly mugged. They now run for the small print. Took plan out in june 08, they say didnt mention lehmans to save money on brochures! now quick trawl on web shows warmings about lehmans well before june o8. Times article reckons its a case of misselling, All investors caught out by this mob- ndfa- should band together and launch a legal action!! They took our money and were reckless with it. one legal action already underway in europe but not here as far as i know- any one up for it???

Denisetrev

dahveed wrote: »

Fact is NDFA made no mention of Lehmans in their brochure. They guaranteed 100% capital back with fixed income.Also stated they were covered by fsa. The brochure was designed to ensnare the cautious investor. Now we know none of their promises were true. They dont even know where they put investors money.I have lost about £21k with this lot and feel like ive been well and truly mugged. They now run for the small print. Took plan out in june 08, they say didnt mention lehmans to save money on brochures! now quick trawl on web shows warmings about lehmans well before june o8. Times article reckons its a case of misselling, All investors caught out by this mob- ndfa- should band together and launch a legal action!! They took our money and were reckless with it. one legal action already underway in europe but not here as far as i know- any one up for it???

I have just read your posting, I was told that it was a safe investment and my capital was guaranteed. I think that as many people as possible should get together and launch legal action. I have written to NDFA and made a complaint but, of course, they don't want to know and do not feel that they acted negligantly with my money (I beg to differ)! I can't believe that they can invest your money with someone who is not registered under the compensation scheme after they have marketed the product as "100% capital guaranteed" and I was also told this. NDFA do not seem very forthcoming with information and I don't think they know where anyones money really is. Has anyone any idea how to go about taking any action?

EdInvestor

Initially you can complain to NDFA and then to the FOSif they reject it. This is a free procedure.

https://www.financial-ombudsman.org.uk

You may wish to research the misselling of "precipice bonds" , it has certain similarities, same company involved..