Santander letter re. Stocks & shares ISAs

simonvw

Dear all
While a long-time MSE follower, this is my first forum post, thus reflecting my desire for any helpful feedback. Has anyone else been written to this summer by Santander regarding FCA concerns about investments sold between 2010 and 2011?

My wife and I each took out a Fixed Return Plan Growth, which guaranteed our investment plus a lump sum back at maturity, which is this November.

We've never received the letter but a friend who took out a similar policy has, and told us about it. I've now raised it with Santander and they are 'getting back to me'.

The key thing really for us is whether the actual investment is at risk, or whether - as I hope - this has more been about a box-ticking exercise aimed at identifying people who didn't realise there was a maturity date and/or weren't aware they could lose money if they cashed it in early, as Santander now appear to be offering.

Also, the investments are only guaranteed in so far as Santander UK is concerned, but not if the Santander Guarantee Company fails. This I find a bit confusing.

So, if anyone has received such a letter and/or can offer any useful advice on th best course of action (i.e. cash in early and lose some money or stay in it to the end), it'd be much appreciated.

Thanks very much

bigadaj

It's probably a fairly generic regulatory review regarding whether you were correctly sold the policy.

If that's the case you'll probably receive some correspondence and a review of your case and fact find if they still have them.

Markets have been pretty good so you'll probably get a calculation showing that even if you were Mis sold, or rather mid advised, the actual returns you'll get will have exceeded what you would have got if teh investment had been more appropriate.

This is not to say that you probably wouldn't have been a lot better of with staright investments rather than structured products but you're probably better off than if the money had been saved.

simonvw

Thanks, it would appear that there aren't any real concerns (at least not what I've read about) about the investment returns, and that's my main worry obviously. The Santander website has an info page about it, and it seems they've written to a lot of people, if only to cover their backs.
I am though a little concerned about the solvency issue. Santander UK I get, but Santander Guarantee Company? Who are they - a parent company? Guess I'll see what they say in reply

bigadaj

simonvw wrote: »

Thanks, it would appear that there aren't any real concerns (at least not what I've read about) about the investment returns, and that's my main worry obviously. The Santander website has an info page about it, and it seems they've written to a lot of people, if only to cover their backs.
I am though a little concerned about the solvency issue. Santander UK I get, but Santander Guarantee Company? Who are they - a parent company? Guess I'll see what they say in reply

It should be explained in your documentation, these products have counter parties typically, and it could be that this company is santanders counter party.

Would doubt there's anything to worry about but contact them and ask them to explain and justify for any concerns.