FSA takes over Lehman structured products investigation
The Financial Services Authority (FSA) has announced it will take sole responsibility for the investigation into Lehman Brothers-backed structured products in the UK. The decision was taken jointly between the UK regulatory body and the Financial Ombudsman, which will now withdraw itself from the matter for the time being.
The Ombudsman had been investigating several individual cases of investors who lost money after buying Lehman-backed structured products, which became virtually worthless following the insolvency of the US bank in September 2008. Both bodies have decided that the collapse has raised wider issues in the structured products market. The FSA will be able to deal with a greater number of consumers than the Ombudsman, and regulatory options could be "one way of reducing consumer detriment," says the
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