Lehmans three years on: Do advisers understand counterparty risk?

Thousands of UK IFAs and their clients, who held Lehman-backed products lost money overnight with many yet to reclaim a penny. So on the third anniversary of that fateful day for the finance industry, what effect has Lehmans’ collapse had on adviser attitude to counterparty risk? Alan Dick, principal of Forty Two Wealth Management, was always sceptical about counterparty risk products. He avoids structured products and instead focuses on selling “easy to understand, transparent” vehicles to his clients. He says the collapse of Lehmans has only made him more sceptical about counterp...