Market Linked Bonds

pzulba_2

Market Linked Bonds - given the recent penalties/fines by the FCA on both the Yorkshire Building Society and Credit Suisse,

1) Can someone explain the remedies to be offered to Depositers

&

2) Apart from the YBS, which other societies have similar products and what options will they be offering to depositors

PZULBA - Out of Africa (Retired)

dunstonh

2) Apart from the YBS, which other societies have similar products and what options will they be offering to depositors

Structured products (or SCARPS to give them the short name) have been available for over 20 years. They are less prominent now as the retail distribution review largely killed them off (mainly due to them not being allowed to factor in commission and the largest distribution channels - the banks - closing most of their salesforces) along with the credit crunch which led to the product being treated as higher risk than previously considered.

The problem wasnt with the product with YBS and credit Suisse. It was with their advertising. So, it shouldnt affect others unless their advertising turned out to be wrong.

1) Can someone explain the remedies to be offered to Depositers

Both firms have agreed to contact customers who bought the product between November 2009 and June 2012 to offer the chance of exiting it without penalty and, where applicable, receive an interest payment. Although chances are that the those that bought in 2009/10 are probably a lot better off than taking interest. Indeed, its possible most are.