We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
santander structured products
flipflop1962
Posts: 5 Forumite
Hello i wonder if anybody can give me some advice about if santander guaranteed capital plus product [ issue4] are covered under FSCS compensation scheme this is a product which i took out in 2008 & matures in 2014. My local Santander Branch havent given me much clarity about this product. The FSCS isnt committing yes or no if it is covered because it isnt a deposit scheme and I am getting quite worried about this product - especially being with Santander as I am not too concerned about the potential gains, I just want to know if the original deposit is safe. I would appreciate it if anybody out there could give advice. Thank you.
0
Comments
-
Hello i wonder if anybody can give me some advice about if santander guaranteed capital plus product [ issue4] are covered under FSCS compensation scheme
No. They are not protected once they hit the strike date (The date of investment)The FSCS isnt committing yes or no if it is covered because it isnt a deposit scheme
I would have thought the FSCS isnt committing as they they wont know without knowing the product specifics. There are a small number of deposit based structured products that do get FSCS protection. The investment based ones do not.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thank you for your advice but when you say strike date - do you actually mean when the investment commenced which was actually December 2008. Im under the impression that this investment is actually being held under the name of Santander Asset Management and therefore it may be a grey area and hopefully it may be covered under the FSCS scheme. I would appreciate your comments on this. Thanks again.0
-
Thank you for your advice but when you say strike date - do you actually mean when the investment commenced which was actually December 2008.
The strike date is the investment date. Typically a fixed date on the product. However, you may have been able to deposit the money into the product upto a month beforehand.Im under the impression that this investment is actually being held under the name of Santander Asset Management and therefore it may be a grey area and hopefully it may be covered under the FSCS scheme.
It would be the only investment based structured product that is if that was the case. Its not that grey. That is partly why the FSA fined Santander for misleading material on this earlier in the year.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks again for your speedy response. In your opinion is this particular investment with Santander something I am unduly worried about at the moment. As it may not be covered under the UK protection scheme - that this investment could possibly used to prop up the spanish Santander?.In the last banking crisis it seemed the uk government at the time made sure that all the the icelandic banks had customers protection. The main concern for me now is that the crisis seems to be on a lot larger scale so do i try & pull my money out this product or do i sit tight & hope it all works out ok ? thanks0
-
Structured investment products rely on a 'counterparty' bank for their capital security. The counterparty is not necessarily Santander, but you need to check. It could be any bank that Sandander chose to use when they launched the product. If the counterparty fails, FSCS will not compensate you for that reason alone. This is what happened to 6,000 UK savers when Lehman Brothers collapsed in 2008. The plans were issued by UK companies and most did not mention Lehman Brothers in the brochures. Some of those UK issuers have now gone bust with mis-selling liabilities, and FSCS is now compensating some savers for the mis-selling (but not for the counterparty failure). See the Lehman action group web site (missoldinvestments.co.uk) for more detail on that.0
-
Thank you so much for your advice lehmanvictim i wiil definitely be asking santander if they are counterparty, i went into santander late yesterday & they told me the product wasn,t covered by the FSCS & the product was being held in a guernsey account . THE F/A told me there was no way santander wuold get into trouble as they have £600 billion balance sheet , MY MAIN QUESTION BACK TO THEM NOW IS ABOUT THE COUNTERPARTY.thanks again your advice is very helpfull.0
-
A subsidiary of Santander is the market counterparty.THE F/A told me there was no way santander wuold get into trouble as they have £600 billion balance sheet
The issue is the counterparty is not the same as the retail bank. It shares name and logo as it is part of the same group but one could fail without the other. I spoke with a structured product risk assessor earlier in the year on this and it was one of the reasons LloydsTSB were being ruled out as a market counterparty despite the bank being majority owned by the Govt. They could let parts of the bank fail and not cover their liabilities whilst keeping the retail bank protected.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
structureds generally arent covered, but hey, wot do i know?
I would take my profits at first opportunity n say thanx v much.
You can't change anyones mind. Learn this lesson now if u havnt already. Time to 'worry' and research is before u do the deal.
Is there anyone who can tell me how it is im now offered 80%+ profit over 5yrs by one of these schemes when other returns can be so paltry. What is the advantage over a ftse tracker? R they promising 16%pa even if the ftse is only up 1 pt?0 -
What is the advantage over a ftse tracker?
Depends on the terms. Some will offer limited advantage. Others could easily make sense.R they promising 16%pa even if the ftse is only up 1 pt?
There are some that would have terms along those lines.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards