Investors in failed structured product provider NDF Administration (NDFA) are planning a legal challenge to an FSCS decision not to compensate their loss.
The FSCS told the 2,000 investors in NDFA's Lehman Brothers-backed Capital-at-Risk products in September they would not automatically qualify for compensation. It ruled the marketing materials from NDFA provided "adequate and appropriate warnings" that there was a risk to investors' capital if the counterparty (Lehmans) failed. However, investors disagree marketing materials explained the counterparty risk and around 150 people are now seeking legal advice from Regulatory Legal to have the ruling overturned. Investors argue Lehmans, which filed for bankruptcy in September 2008, was...
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