Former RJ Temple clients sold structured products by the collapsed national IFA are set to suffer heavy losses over the next four months as the products mature, according to documents seen by Money Marketing.
A list of 48 structured products that RJ Temple sold to its clients, including the Zurich Life extra income bond, NDF extra income and growth plan 3, Scottish Life International income bonus bond, Euro Life extra income & growth Isa and NDF income and growth plan 4, all mature in the next four months.
Research from Chartwell Investment Management shows that investors with products such as the NDF extra income and growth plan 3 will get none of their original capital back. Markets would need to rise by 105 per cent for investors with bonds such as the Scottish Life International income bonus to get their original investment back.
According to a list of creditors compiled by receivers KPMG, there are already 119 listed client contingent claims with RJT.
Although the firm traded as an IFA, it had close links with marketing firm FPDA which advertised structured products through direct mailing. At the peak of its profitability, the firm had about 60,000 clients. Former consultants estimate as many as half of these could have been sold a type of structured product.
Former RJT consultant Matthew Cove says: “It is outrageous that RJT missold pre-cipice bonds but has then been allowed to close the business, leaving behind all debts and liabilities and taking all the assets into a new business.”
Former RJT marketing director Ian Millward says: “Without a doubt, structured products are going to be a big liability for the industry. Many were sold direct but I believe the big issue will be over those that were sold face to face with full advice.”