About 2,000 investors in Lehman-backed 'Capital at Risk' structured product plans run by failed firms Arc, NDF Administration and Defined Returns Limited (DRL) will not be able to claim compensation from the Financial Services Compensation Scheme (FSCS).
The FSCS says it is satisfied the relevant marketing materials for the Capital at Risk products provided adequate and appropriate warnings that there was a risk to investors' capital if the organisation backing these investment products (Lehmans) failed. It announced last year it would be offering compensation to the 1,700 investors in the 'Capital Secure' products backed by the collapsed firms. The investments defined as Capital-at-Risk products are: ■NDF - Fixed Income or Growth Plan, February 2008 ■NDF - Fixed Income Plan, June 2008 ■DRL - Kick Out Performance Plan Issue 1 ...
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