In a letter to the newspaper MS, from Gloucestershire, explained how he or she (it’s difficult to tell from the initials) invested a £9,037 maturing Tessa in a Global Titans Tessa plan. Five years on he or she has got back “the same £9,037 despite a big bounce back in share prices over that time.” MS wrote that “the plan is now administered by TD Waterhouse but no one there is able to explain this dreadful performance.”

Levene explained to the investor that the plan, which was sold by DLJdirect (now part of TD Waterhouse) and manufactured by Credit Suisse, comprised of five baskets of 10 stocks. “It only took one stock in each basket during the last year of the plan to be 33% or more below its starting price to trigger a “safety breach” and wipe out your profit on that basket. And at least one stock in each basket did so,” Levene told the complainant.

Why TD Waterhouse is allegedly unable to explain this is a mystery. And if this is the case then MS has every right to feel aggrieved. But should MS really be so surprised at the outcome of the plan?

Levene goes on to say that “if advisers failed to point out these substantial risks, consider a complaint.”

Nowhere in the letter has MS said that he or she was mis-sold the plan or even suggested that the risks were not explained. Also suggesting that TD Waterhouse can’t allegedly explain how the plan worked because “perhaps no one understood how it works” borders on libellous according my journalistic training. (Note my use of the word ‘allegedly’ throughout this article: after all MS could be anyone with an axe to grind, and we can’t really trust what they write, especially considering their desire for anonymity).

From the facts at hand I can divulge this: MS wrote the letter to The Guardian, and can therefore read. If MS can read he or she probably should have read the accompanying documents that explained the risks of the investment. Also, I assume that Levene was not present when MS decided to invest in the plan and therefore probably shouldn’t end his response with “consider a complaint” as he really doesn’t have access to all the facts. He should also probably avoid saying that TD Waterhouse staff are perhaps unable to understand how the plan worked.

I have never worked as a financial ‘agony uncle.’ But from the facts I have at hand I can see that nothing is simple in the world of consumer champions.