NDFA/DRL investors may be entitled to FSCS cover
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The FSA has confirmed that consumers invested in Lehman-backed products with either NDF administration or Defined Returns Limited may be entitled to compensation from the Financial Services Compensation Scheme.
An FSA update this afternoon followed an earlier confirmation from Grant Thornton that it had been appointed as administrator to the two firms.
Money Marketing revealed last night that NDFA was likely to go into administration this week. The firm has around £30m of investors money in Lehman-backed plans.
Together both NDFA and DRL have 35,000 customers and around 10 per cent of these have invested in Lehman Brothers backed structured products.
The FSCS has now deemed the two firms to be in default and expects to process the majority of claims within six months of receiving them.
Complaints that were already being considered by the Ombudsman at the time NDF and DRL went to administration will be transferred to and considered by the FSCS.
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