Invested in KSF via an AIG Bond

  • David - fightin...
  • 23/06/09 31/05/09
  • a depositor
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Posted: Tue, 23/06/2009 - 10:04


My folks deposited £112k in an AIG bond. Last week a letter arrived for his IFA telling them the news of KSF demise. The letter suggests a posibility of up to 75% coming back to them.
Would they not qualify for the £50k because they invested via AIG? It seems that AIG get the £50k
Is there any recourse against the IFA, I've read the key facts and there is no mention of these risks. It does mention the Compensation of Policyholders Regulations 1991 which protects investors up to 90% of the value of their policies.
There is now just £14000 in their fund which AIG are paying out £1400 a month until the fund is exhausted.
My folks are pensioners and are just not cut out to be dealing with this type of thing, I need to help them but how?
I was going to complain to the firm of IFA's and the the Ombudsman for miss selling but is this the right route?

Would be most grateful for advice

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AIG Bond

  • Mrs Not Too Happy
  • 12/10/08 31/05/09
  • a depositor
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  • Tue, 23/06/2009 - 19:17

I suggest the following line of attack;

(1) complain to the firm of IFA's and see how they deal with the complaint. This will not cost anything

(2) If no success then go legal.

Definitly persue compensation

  • dawes
  • 24/10/08 31/05/09
  • unspecified
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  • Tue, 23/06/2009 - 13:05

Any IFA will be fully responsible for your loss, I believe Darling suggested claiming from any IFA who put money in Iceland.

sue your ifa

  • hippychickrobbed
  • 03/11/08 31/05/09
  • a depositor
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  • Tue, 23/06/2009 - 17:55

any financial advisor who placed his clients funds like us in this doomed bank, especially days before or even a couple of months should be sued and his employment terminated. One goes for advice to a financial advisor not have his life turned upside down... get on with it...

AIG Bond

  • bobwin
  • 23/12/08 n/a (free)
  • a depositor
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  • Tue, 23/06/2009 - 12:48

Sorry but your folks are not in a good position.

Since they are invested via an insurance company, they do not get a payout from the Depositors Compensation Scheme--the company gets 20,000 only .

The liquidator will pay out to them as funds are available.

They could have got money from the early payment scheme which I believe is now closed--this might have been 20,000.

Surprised they have only just been informed--this has been going on for 8 months now.

They need to make a claim!

If a IFA advised them they should sue.

  • dawes
  • 24/10/08 31/05/09
  • unspecified
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  • Tue, 23/06/2009 - 15:30

There is no way a IFA could get away with claiming it was a safe investment - warning went back years about Iceland.