Revealed: The warning that sealed NDFA's fate

Laura Miller
clock

Structured product provider NDFA was advised that both the courts and the Financial Services Authority would likely hold it liable for investors' losses due to "negligence and misrepresentation" in the marketing of its Lehman-backed plans, just weeks before it entered administration.

Documents seen by IFAonline reveal NDFA was told by its legal counsel in mid-September 2009 that the regulator would likely find marketing material for both its 'Capital At Risk' and 'Capital Secure' products broke FSA rules that promotions must be fair and not misleading. A court hearing any civil claims against it would hold NDFA liable for investors' losses, according to the unnamed law office. The assessment - which Grant Thorton, administrators for the failed firm, has said it will also apply to all NDFA creditors when the firm enters liquidation - is in stark contrast to the off...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

Sustainable Investment Festival 2023: Speaker line-up revealed!

Sustainable Investment Festival 2023: Speaker line-up revealed!

Specialist PA event to help advisers with sustainable investing

Professional Adviser
clock 24 March 2023 • 1 min read
Allfunds launches dedicated alternatives division

Allfunds launches dedicated alternatives division

Strong demand from wealth management clients

Charlotte Moore
clock 21 March 2023 • 1 min read
A fax machine

Fax machines remain 'backbone' of UK asset management operations

Antiquated technology remains steadfast in investment offices

Elliot Gulliver-Needham
clock 21 March 2023 • 1 min read