26th October 2009
The firm Arc Capital and Income plc (Arc) went into administration on 26 October 2009. The Financial Services Authority (FSA) determined Arc to be "in default" on 26 October 2009. This means that the FSCS can be satisfied the firm is unable, or likely to be unable, to pay claims against it. A determination of default opens the way for consumers to claim compensation from the FSCS.
The FSCS is liaising with the FSA and the Joint Administrators (Robin Davis, Melvyn Carter and John Alexander of Carter Backer Winter LLP) to understand as much as possible about the activities of the firm which might give rise to valid claims for compensation.
It is too early for us to say which products are affected and which investors could be eligible for compensation. However, we have commenced our investigations into certain investment products sold by the firm which were backed by the Lehman Brothers Group.
The FSCS is the statutory fund of last resort for customers of financial services firms which cannot meet their liabilities. We are doing everything in our power to enable us to start processing claims and paying compensation to any eligible claimants. We understand that the Joint Administrators are also treating this matter with urgency and will be writing to investors shortly about the administration.
Further information is available on the Joint Administrators dedicated website or through their dedicated customer helpline on 0844 880 6511.
Customers of the firm do not need to contact the FSCS at this stage. We will be updating our own website as soon as we are in a position to explain the types of claim we may be able to consider and how investors should make their claims.