I had a rather garbled conversation ith my mother last nigh. My father has an equity ISA that is (was?) worth about £8K. It was purchased via B&B but apparently was 'under written' by Lehmans. My mother advises he has recieved a letter that basically says he has lost the money he invested in it.

My question is whether the fund is in anyway 'protected' by the gov guarantee (obviously, appreciate that the value of any Lehman shares held within the fund will be worth $0) as it is an ISA?