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Tories call for end to structured confusion

Conservative shadow minister for the Treasury Mark Hoban has urged the Government to end the confusion on structured products.

Market sources have separately told Money Marketing that Lehman Brothers’ underwritten products at risk total in the region of £500m.

Speaking to Money Marketing at the Conservative conference this week, Hoban said investors in Lehman-backed structured products need to be given some clarity over whether they have any protection from the Financial Services Compensation Scheme.

He said: “It is not clear, given what has happened to Lehman, what value that guarantee has any more. There is a risk here that investors will join the ranks of creditors. If their portfolio underperforms, they will end up registering a claim.

“The Government needs to take a lead in helping to clar-ify where these products stand and any recourse that consumers might have to the FSCS.”

Hoban said the challenge for advisers will be to demonstrate that they took full account of the risks associated with these products.


PPF waits for details on Lehman scheme

The PPF is waiting for more information from Lehman Brothers’ pension scheme trustees to assess whether it will fall on the scheme having applied last week.

Special agents

Controversy caused by the retail distribution review interim report over who should be entitled or, indeed, required to give advice has stirred old memories.


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