Adviser Week: Meteor's marketing under the spotlight

So, there are THREE Meteor Plans involved with total assets of £12 million

One of these plans is Meteor Prima Growth Plan 7, as stated in your article, what are the names of the other TWO Meteor Plans involved please?

At the time these products we're issued Lehmans Credit Default Swap levels were much higher than the rest of the market. This made it easy for a structured product provider to create prodcuts that looked cosmetically good. However, as so often is the case in this sector (with other examples such as dual index products) you could argue this was achieved by obscuring the risk.

I'm not suggesting they had any inkling of Lehman's going to the wall. Nobody did at that stage. But, it was Lehman's weakened financial position that enabled such seemingly attractive terms to be offered. A product provider would have known this when structuring the funds but it's a shame IFA's and clients weren't made similarly aware so they could judge the product in true context.

Just an observation but Meteor also seem very prominent in the life settlement market - another area where the clarity of the marketing material is under scrutiny and where retail investors (and their advisers) often buy into a straight line valuation model without being fully up to speed on the true risks. I've never looked at Meteor's material but I do think it's a case of watch this pace for the sector as a potential area of misselling.

The holders of which 3 Meteor structured products may benefit from this ruling then.I think we should be told

Kevin B,

The othe 2 plans effected by this ruling are , PRIMA PLUS PROTECTED PLAN AND PRIMA PLUS PLAN 2. As they all struck on the same day and were effected by the downgrade of Lehmans.

Thank you Philip.

Potentially good news for holders of

Meteor Prima Growth Plan7

Meteor Prima Plus Protected Plan and

Prima Plus Plan 2.

:)

Those 3 plans have also been mentioned on the Trustnet website via SRPadvisor.com and on www.missoldinvestments.co.uk .

Thanks again

KevinB

is it right another group is now forming to take legal action against meteor.

Looks like breach of contract if you didnt get the backing of a company with the rating promised in this case A+.No doubt in my mind.

Have you a copy of the brochire and what exact wording is kevinb