Arc Capital & Income's administrator has received an FSA waiver which will allow client funds to be distributed.
Carter Backer Winter received notification of the waiver last night and it came into force at 12 noon today.
The ruling means any income or capital owed to investors, which until now has remained frozen in client accounts, can be returned.
As Merchant Capital has bought the structured product books of ACI, any income or capital payments received before it went into administration will be transferred to Merchant for distribution.
Any income or capital payments received after ACI went into administration will be paid by CBW. However, these will incur a deduction of about 3% to pay for the administrator's costs.
Lehman Brothers-backed products are being dealt with through a separate process.
ACI was put into administration at the end of October. The following month, Merchant acquired the business which saw the transfer of about 10,000 clients with investments worth £100m.
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