Lehman-backed products cause collapse of ACI

A THIRD UK company which sold investments backed by Lehman Brothers has gone into administration, after a Financial Services Authority investigation into the way &ldquo;structured products&rdquo; had been sold.<br /><br />London-based Arc Capital and Income (ACI) sold the complicated &ldquo;capital guaranteed&rdquo; structured products, some of which were backed by the collapsed US bank, via independent advisers.<br /><br />The FSA requested that the ACI evaluate its financial position after investors threatened to file mis-selling claims in relation to the Lehman-backed products. <br /><br />Following the firm filing for adminstration, around 250 of ACI&rsquo;s 10,000 private investors &ndash; which had a total of &pound;5.75m invested in the products &ndash; can now claim up to &pound;48,000 each from the FSA&rsquo;s compensation scheme.<br /><br />Investors in the firm&rsquo;s other products have been informed that their money is safe by administrators Carter Backer Winter.<br /><br />The news comes just weeks after two other firms which offered Lehman-backed structured financial products, NDF and Defined Returns, said they were going into administration.