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 “structured products” had been sold.
London-based Arc Capital and Income (ACI) sold the complicated “capital guaranteed” structured products, some of which were backed by the collapsed US bank, via independent advisers.
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.
Following the firm filing for adminstration, around 250 of ACI’s 10,000 private investors – which had a total of £5.75m invested in the products – can now claim up to £48,000 each from the FSA’s compensation scheme.
Investors in the firm’s other products have been informed that their money is safe by administrators Carter Backer Winter.
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.