Money Marketing revealed last night that NDFA is likely to go into administration this week. The FSA is expected to conclude that NDFA is liable for losses on its Lehman-backed structured products. The firm has around £30m of investors money in Lehman-backed plans.
A spokesman for Opal says: “Opal has been asked by the insolvency administrators to continue to look after NDFA’s work so there should be no impact at all on IFAs or clients.”
On its website Opal says it has provided administration of structured products for NDFA for 10 years.
The two firms share the same premises in Hertfordshire but are separate legal entities.
NDFA set up Defined Returns Limited to administer plans that were directly run by Lehman Brothers. However NDFA also had its own plans backed by Lehman Brothers.
NDFA has sold over £1.6bn of investments and since 1999 has launched over one hundred and fifty structured investments.
NDFA made up between 6 and 10 per cent of Opal’s business.