Some 6000 UK savers lost over 100m in structured products investments when Lehman collapsed. 18 months on, some 4000 are still uncompensated, despite the product brochures promising FSCS cover. The Lehman structured product investor action group is pressing FSCS to make up their mind on whether to compemsate, whilst the finance industry squabbles about FSCS funding. Those who lost money in these products through the collapse of Lehman can join the action group missoldinvestments.co.uk

The article talks about inbuilt FSCS protection, but as Lehman victims have found out, there is no FSCS when the counterparty goes bust, even when the counterparty is regulated by FSA (as Lehman was). There can be FSCS cover when the product provider goes bust (as happened with NDFA, DRL and ARC) but only if it can be demonstrated that mis-selling took place. People who bought these Lehman products through Meteor are stuck because Meteor didnt go bust. The problem now is that FSCS is distinguishing further between various types of structured products bought through NDFA, DRL and ARC. Thousands of ordinary UK savers are kept waiting for FSCS compensation whilst the Structured Product industry continues to market products as FSCS-protected. It is nonsense.

As one of the thousands who are waiting for the FSCS to determine whether I qualify for 'a compensation form' to begin the process of trying to get back my hard earned savings from NDFA Feb 08 plan which 'guaranteed income and the return of capital after 5 years' I am amazed that IFA's and Product providers seek new ways to peddle this toxic rubbish on unsuspecting cautious savers. The NDFA flyer which entice my money boldly claimed 'covered by the FSCS compensation scheme' right- we fell for that one ! 2 years on and it makes me mad that some hooray henry has turned my £40k into a few champers w/ends while I -and thousands like me- are left to try to navigate the sprawling mess that Lehmans dropped us in just to get a sniff of our money back. All we get from the FSCS is 'its complicated' . The whole fiasco is being run like a third world scandal - the Financial Services sector should clean up this mess -your reputations are in tatters -but do you care? Doesn't look like it.