Investors in capital at risk products from NDF Administration, Defined Returns Limited (DRL) and Arc Capital and Income will be told whether they will receive compensation “before the end of September”.
The structured product investors will get a Financial Services Compensation Scheme decision more than nine months after the groups failed due to exposure to the collapse of Lehman Brothers.
The FSCS announced a £22m levy on intermediaries in March to cover losses from certain other products from NDFA, DRL and Arc. This was in addition to the £58m levy charged to cover client losses from the Keydata collapse.
An FSCS statement on the capital at risk products says: “These investigations have been necessary for us to determine whether there are likely to be any bases on which we will be able to accept claims from investors.
“This has been a lengthy and particularly complicated process involving an analysis of the information included in the fund brochures along with a review of other relevant company records.
“We now expect to be able to confirm our position before the end of September, and thank investors for their continued patience.”
The affected products are…
NDF – Fixed Income or Growth Plan February 2008
NDF – Fixed Income Plan June 2008
DRL – Kick Out Performance Plan Issue 1
Arc – Fixed Income Plan 6
Arc – Stepped Kick Out Plan 5