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NDFA investor appeals to Ussher over guarantees

An investor who fears losing a big chunk of the £50,000 he invested in a Lehman-backed NDFA structured product has written to the Government calling for greater transparency on capital guarantees.

Paul Wheeler, 52, took out a £50,000 NDFA capital secure fixed growth plan jointly with his wife after she received a redundancy payout and is worried that the couple may face substantial losses.

He confronted Treasury Economic Secretary Kitty Ussher over his concerns at the Labour conference in Manchester last month and she told him she would look into the matter.

In a letter to Ussher, Whee- ler writes: “If we want to encourage a savings culture, then the interests of UK savers need to be protected. My concern is over the lack of transparency over the nature of the guarantee and the frankly confusing responsibilities of the financial adviser, product provider and investment institution.

“I would not have taken out this product without the heavily promoted guarantee to my existing capital.”

Wheeler adds that the guarantee was implicit in the title of the product and urges the authorities to ensure the transparency of guarantees on all savings packages currently advertised in the marketplace.

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