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FSA to take action on Lehman Bros capital protected investments

When US financial giant Lehman Bros collapsed, a number of UK investors who had bought into the "capital protected" sector of the market were not overly concerned and under the impression there capital was actually protected. However, these so-called structured products are now worth only a fraction of the initial investment and the Financial Services Authority (FSA) is looking into this.

It would appear that while many people assumed that these "capital protected" investments were indeed protected, the small print (which many people still do not read) confirmed that these guarantees were not set in stone. As a consequence, when the US giant collapsed and financial markets around the world went into meltdown the value of these structured investments also headed south. As a consequence over 5000 UK investors are nursing losses which were not covered by the Financial Services Compensation Scheme.

The FSA is primed to take action on behalf of investors who acquired these particular assets although at this moment in time it is unclear if, how and when investors may well receive any compensation. Despite the fact that Lehman Bros has been in administration for nearly one year many original investors are no closer to the end game.

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