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A letter from an IFA about the L&G fiasco

In the wake of the L&G structured product fiasco, the editor imagines a letter from an IFA to his or her clients.

Dear client,

I regret to inform you that your fund may lose twenty per cent of its value. I was unfortunately unaware of this for the last three months because the provider (regulatory term) Legal & General failed to inform me that this was the case.

I therefore dearly hope that you did not follow my advice which saw you invest in that holiday home/risk money you thought you could afford to lose by investing in the stock market because a substantial proportion of your portfolio was safe with L&G/buy your grandchildren Christmas presents which were slightly on the extravagant side because you didn’t realise you had lost all that cash. I am currently trying to discover what on earth the senior management of Legal & General (until this point one of the most trusted brands in the United Kingdom) thought they were doing in keeping this loss a secret while they pursued legal (how ironic) action against a now bankrupt American bank. While I have not exactly been a fan of the operations of some other structured product providers at the very least they had the decency to tell me what was going on several months ago.

So as I say, don’t do anything I said you should do while I do my best to find out what they thought they were up to. Oh yes and Merry Christmas.

Yours sincerely

Your trusted (until some big life office screwed up the relationship) Independent Financial Adviser.

Editor’s note: Any IFAs who are concerned they may have to write a letter of this nature could they please email or call the Money Marketing news desk on or off the record, on 0207 943 8042 or email hannah.stodell@centaur.co.uk

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