30th September 2010
Update for investors in Capital at Risk products
The FSCS has carried out extensive investigations and analysis into whether customers of NDF, DRL or Arc who held Capital at Risk products are likely to be able to bring valid claims for compensation, and if so on what grounds.
The investments defined as Capital-at-Risk products are:
Following our review, we are satisfied that the relevant marketing materials provided adequate and appropriate warnings that there was a risk to investors’ capital if the organisation backing these investment products failed. This risk is known as the counterparty risk and the firm backing these investment products was in each case part of the Lehman Brothers group.
Investors will not therefore have claims arising from the materials generally and we will not send application forms to all known investors with Capital at Risk products. However, if any investor wishes to submit a claim to us, for any specific other reason, they can do so by emailing us to request an application form. At that time, investors should provide us with as much information as possible about why they believe their claim is eligible for compensation. We will then assess claims for compensation on a case-by-case basis. By completing the application form, the investor will be able to set out why they believe they have a valid claim against NDF, DRL or Arc. Please be aware, however, that we can only accept a claim where a claimant can demonstrate to us that a legal liability is owed to him or her by one of the firms in default.
There have been a number of complex issues to resolve which required detailed review and external advice. Whilst we understand that investors will be disappointed by this news, we are grateful for the patience shown whilst we investigated the position.
Contact the FSCS
If you think you may have a claim and you would like to be sent an application form, please contact the FSCS in writing at:
Financial Services Compensation Scheme
7th floor, Lloyds Chambers
If you have any other enquiries you can contact us by phone, in writing, or by email.
Further information regarding our position in relation to ‘Capital Secure’ funds promoted by NDF, DRL and Arc was provided in our update on 11 December 2009.