NDF, Defined Returns, and Arc

11th December 2009

FSCS starts to consider individual claims for structured products

The FSCS is ready to consider individual compensation claims relating to structured products sold by NDF Administration Limited (NDF), Defined Returns Limited (DRL) and Arc Capital and Income plc (Arc). All three firms were recently declared in default by the FSA.

The FSCS has identified two broad categories of products for the three firms: Capital Secure products and Capital At Risk products.

1. Capital Secure

The FSCS's investigations indicate that Capital Secure products may have been mis-sold by NDF, DRL and Arc. The investments categorised as Capital Secure products include:

  • NDF - Capital Secure Fixed Growth Plan March 2008
  • NDF - Capital Secure Fixed Growth Plan April 2008
  • NDF - Capital Secure Fixed Growth Plan June 2008
  • DRL - Enhanced Returns Plan Issue 1
  • DRL - Enhanced Returns Plan Issue 2
  • DRL - Enhanced Returns Plan Issue 3
  • DRL - Enhanced Returns Plan Issue 4
  • DRL - Enhanced Emerging Markets Plan Issue 1
  • DRL - Enhanced Returns Plan Issue 5
  • Arc - Bull & Bear Enhanced Investment Plan 3

Application forms will be sent to investors with these products by the end of December. Claims will be processed once the FSCS has received completed application forms and any supporting information.

2. Capital at Risk

The FSCS is continuing to investigate the position of investors with Capital At Risk products. The investments categorised as Capital At Risk products include:

  • NDF - Fixed Income or Growth Plan February 2008
  • NDF - Fixed Income Plan June 2008
  • DRL - Kick Out Performance Plan Issue 1
  • Arc - Fixed Income Plan 6
  • Arc - Stepped Kick Out Plan 5

The FSCS will update investors of Capital At Risk products as soon as our investigations are complete.

Further information on NDF and DRL is available from the administrators' website at www.ndfa.creditorhelpline.co.uk or through their dedicated customer helpline on 0844 770 2203.

Further information on Arc is available from the administrators' website at www.cbw.co.uk/arc or through their dedicated customer helpline on 0844 880 6511.

Jargon Buster

  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).