Lehman Brothers’ action group Spirit is concerned that investors will be put to the back of the compensation queue after structured product providers NDFA and DRL were declared in default and placed in administration.
Action group founder Peter Howard has pledged to continue lobbying the Government and opposition MPs if investors in structured product providers NDFA and DRL are not compensated within an acceptable timeframe.
He says that while in theory it is not right for some invest- ors to jump the queue in terms of the Financial Services Compensation Scheme, investors who lost money in Lehman-backed products have already waited a year just to get to this stage.
He says: “The worry is we go to the bottom of the pile. Within the next week, we should all get letters to say what is happening and that will be the indicator. If there is some indication on time, we will see whether this is acceptable. If it is not, I will be ringing up Conservative MP Ed Vaizey again because we have been hanging around for a year.”
FSCS limits for investment change from January 1, with cover increasing from £48,000 to £50,000.
Howard has £50,000 in a NDFA plan backed by Lehman Brothers and would like to be compensated once the changes have been implemented to avoid a £2,000 shortfall.
However, he says a speedier return would help other investors who have been starved of income from plans since the collapse of Lehman Brothers.
He says: “I think it would be nice for everyone to have their money back before Christmas.”