14th October 2009
The firms NDF Administration Limited (NDF) and Defined Returns Limited (DRL) went into administration on 14 October 2009. The Financial Services Authority (FSA) determined NDF and DRL to be in default on 14 October 2009. This means that the FSCS can be satisfied the firms are unable, or likely to be unable, to pay claims against them. 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 (Andrew Hosking and Martin Ellis of Grant Thornton UK LLP) to understand as much as possible about the activities of the firms 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 firms which were backed by the Lehman Brothers Group. Our preliminary findings indicate that at least some of the marketing materials used by the firms were non-compliant with their regulatory obligations and may give rise to valid claims. With the assistance of the FSA and the Joint Administrators, our investigations and analysis into these products is ongoing.
The FSCS is the statutory safety net 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 770 2203.
Customers of the firms do not need to contact the FSCS at this stage. We will be updating our 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.