Arc Capital and Income plc (ACI) has today announced that it is going into administration. The firm focused on delivering structured investment products to retail investors, 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 review examined the firm’s systems and controls and marketing literature. As a result, the FSA asked the firm to assess its financial position in relation to potential claims by investors with Lehman-backed structured products.
As this firm is now in administration, consumers who had invested in Lehman-backed products with the firm may be entitled to compensation from the Financial Services Compensation Scheme (FSCS).
The firm’s administrators, Robin Davis, Melvyn Carter and John Alexander of Carter Backer Winter LLP will shortly contact all customers who bought products through this firm, 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 ACI.
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.