UK's Financial Services Authority: Wider Implications Referral: Lehmans-Backed Structured Products - Update

Since Lehman Brothers’ collapse in September 2008, the Financial Services Authority (FSA) and Financial Ombudsman Service (the Ombudsman) have been looking at the potential detriment this has caused for investors in the UK structured products market. 

In May, the FSA and Ombudsman agreed that the issues relating to Lehmans-backed structured products should be considered under the "Wider Implications" process^1., in order to allow the FSA to explore all options to achieve the best outcome for consumers.

The FSA committed to update the Ombudsman three months into its review, and has today provided this update. Although the FSA has completed several elements of its work, it has asked the Ombudsman to continue to defer its consideration of complaints by a further three months to allow the FSA to consider the remaining aspects.

The FSA's update, and additional information on this Wider Implications referral, can be found on the Wider Implications website.

The FSA's Moneymadeclear website provides general information for consumers on structured products.

^1. The Wider Implications process is intended to provide a transparent means of bridging potential regulatory gaps or overlaps between the FSA, Ombudsman and Office of Fair Trading on 'significant issues', including those that may give rise to widespread consumer detriment.