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Tenet Group raised the alarm this week by issuing a note informing its 2500 advisers to avoid certain products backed by AIG - rescued last week by the US government - and Lehman, which has filed for Chapter 11 bankruptcy protection.

The IFA group is encouraging advisers to contact clients who have invested in Lehman products issued by Defined Returns.

In a statement, DRL admitted communication with parent company Lehman Brothers had been difficult and that all payments from the stricken bank had been suspended. It could not say whether further payments would be forthcoming or whether investors would receive all or any of their capital.

With Lehman no longer the market maker, DRL also said early encashments and payments on maturity were unavailable. It warned investors should “prepare themselves for a substantial loss of value” if early encashment becomes possible through resumed trading in the underlying Lehman securities.

NDF Administration one of the largest structured product promoters based in the UK, has five plans invested in Lehman Brothers securities, none of which are currently on offer for sale.

The five plans affected are Fixed Income & Growth Plan February 2008, Capital Secure Fixed Growth March, April and June 2008 and the Fixed Income Plan June 2008. NDF has been in contact with the FSA and PricewaterhouseCoopers over the situation and plans to update advisers and clients with more information.

Keydata and Blue Sky have confirmed that none of their products have been backed by any of the affected organisations.

Meteor refused to divulge which of its products used Lehman securities, although the company confirmed no current offers were affected. It will be writing to IFAs next week to clarify the situation. Arc and NDF products, however, are believed to have been affected. Arc were unavailable for comment.

Advisers were keen to play down immediate concerns about other products failing.

Despite being shocked Lehman was marketing its own structured products days before the bank collapsed, Colin Jackson, director at IFA Baronworth, said: “I do not know of anyone who has come unstuck. As I understand it, Lehman’s have kept a skeleton staff to wind things down.”

However, Cliff Husband, head of research at AWD Group, warned that Lehman could potentially go to creditors, “just like any other company”.

“Just like with a corporate bond or something, investors may get back a certain pence in the pound on any investment, or as it’s still trading, it may get bought - it’s unknown,” he said. “We’re looking at a possible default on the medium-term note and then at what you might get back from the creditors when it’s all sorted. I have no idea how long that process could take. It’s uncharted territory on that side of things.”