NDF Administration Limited (NDFA) and Defined Returns Limited (DRL) are going into administration. The two firms offered a variety of retail products, including Lehman-backed structured products.
This announcement follows an extensive Financial Services Authority (FSA) review of structured products and subsequent discussions with the firms. The FSA’s review looked at the UK structured products market, including those backed by Lehman, and as part of this reviewexamined the firms’ systems and controls and marketing literature. As a result, the FSA asked the firms to assess their financial position in relation to potential claims by investors with Lehman-backed structured products.
As these firms are now in administration, consumers who had invested in Lehman-backed products with either of the firms may be entitled to compensation from the Financial Services Compensation Scheme (FSCS).
The firms’ joint administrators, Andrew Hosking and Martin Ellis of Grant Thornton UK LLP, will shortly contact all customers who bought products through these firms, setting out what they need to do next.
The FSA’s Moneymadeclear website provides further information on what this means for consumers who bought Lehman-backed structured products and other products from NDFA and DRL.
Further information on the FSA’s structured products review can be found on the Wider Implications website. The FSA will publish the full findings of its review later this month.
D.C.