The Financial Ombudsman Service (FOS) has ruled advisers could not reasonably have known Lehman Brothers was in financial turmoil when they recommended clients invest in structured products to which it was counterparty, in a trio of rulings.
In separate claims handled by the ombudsman against national adviser Chase de Vere, RSM Tenon - now Baker Tilly Financial Management - and Newcastle-based Professional Wealth Management, it ruled the firms gave suitable advice to invest in Meteor Prima products, which were backed by Lehmans. In June 2008, credit ratings agency Standard & Poor's (S&P) downgraded Lehman Brothers from A+ to A and, in September 2008, Lehmans filed for Chapter 11 Bankruptcy protection. In a case involving Professional Wealth Management, the ombudsman has ruled a recommendation to a couple to invest £20,000...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
