Face the facts

Please.
Howard

"If you make a valid claim against the plan manager or your financial advisor in respect of the investments arranged for you under these terms and conditions and they're unable to meet their liabilities in full you will be entitled to compensation from the Financial Services Compensation Scheme." It goes on to explain how it's made up but basically it's to a maximum of £48,000 - it's the reason I only invested 50.
Waite

But that reassured you seeing that?

Oh yeah, absolutely, I was - I understand there was a risk because the product is related to stock markets but I thought I was covered should the business go bust. And you look at the back and it says here, clear black and white: "NDFA is authorised and regulated by the Financial Services Authority" - and that again gives me confidence.

But the Financial Services Compensation Scheme told us its rules don't allow it to help people like Peter Howard because the plan managers they used are still trading, and the scheme only pays out where no one else can because a company has crashed. If consumers had bought products directly from Lehman Brothers, which has crashed, then the compensation scheme could consider their complaint.

We live in the UK, we are UK investors, we invested in a UK company and we've got a UK Financial Services Compensation Scheme. I think that the four go together.

So with that avenue closed, investors who've lost out are in the hands of the Financial Ombudsman Service. Financial advisor, Ralph Patterson, believes it offers hope for those with genuine complaints - the only problem is sorting them out.