3 Comments

  1. Stephen Sefton
    January 28, 2018 @ 7:25 am

    Some IFA’s do know what structured products are (as they are more commonly known) and only offer them to clients that have been assessed for their appetite to risk. There is a lot of info on these things from respectable sources:-

    https://www.fca.org.uk/consumers/structured-products
    http://www.londonstockexchange.com/prices-and-markets/structured-products/downloads/structuredproducts.pdf
    https://www.moneyadviceservice.org.uk/en/articles/structured-deposits-and-investment-products
    https://www.fca.org.uk/publications/thematic-reviews/tr15-2-structured-products-thematic-review-product-development-and

    It is untrue to say they are ALL bad. I think FCA guidance to IFA’s is to limit Structured Products to no more than 15% of a client’s portfolio. Like most things, it is a sad fact that not all advisers are good advisers but that doesn’t mean we should tar all advisers with the same brush.

    The advice really is, if you don’t understand them, don’t buy them. If you can’t afford to lose all your investment, don’t buy them and NEVER (with ANY investment) put all your eggs in one basket! As with the 2:30 at Kempston, you only place money you can afford to lose on the horse – and then you can have a lot of fun at the races. You play according to your risk profile.

    There are few REALLY safe places for a pension. My company pension – years ago – had some of my money in Equitable Life and we all know what happened there!

    That many advisers don’t understand them is a shocking situation because they are not that difficult. Even I understand them!

    Reply

    • Angie
      January 28, 2018 @ 8:50 am

      In the Continental Wealth Management scam, 1,000 people had around £100 million put at risk because they were all invested in structured notes from Commerzbank, RBC, Nomura and Leonteq. Many have lost 50% – some more and some all. You are right, they are not all bad – but in this case they were. Structured notes are a bit like fireworks – in the right hands they are safe, but in the wrong hands they can maim or kill.

      Reply

  2. Linda Brett
    February 16, 2018 @ 8:28 am

    My entire pension pot was put into Leonteq and Notenstein notes without me even knowing about it. My signature was scanned onto dealing instructions by Continental Wealth Management and accepted by my Trustee Momentum Malta.
    I lost £8000 on one Leonteq deal alone. Total losses £13,000 in a few months.
    My risk status was low but was changed to medium by these scammers.

    To add insult to injury £75 was charged as advisor fees and £31 for each transaction !!!

    Reply

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