View more on these topics

Opal to continue to administer NDFA structured plans

Third party administrator Opal says it will continue to administer NDF Administration structured product plans, following news that the plan manager is on the brink of administration.

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.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment