The Financial Services Authority (FSA) has confirmed that the structured product provider Arc Capital and Income has entered administration.
The announcement came after a review by the FSA of the UK structured products market, including those backed by the bankrupt Lehman Brothers.
The regulator said that as part of the review, the marketing and distribution of the firm's Lehman Brothers-backed structured products had been examined.
Robin Davis, Melvyn Carter and John Alexander of Carter Backer Winter LLP have been appointed administrators and have taken over the running of the company. The FSA has confirmed that as the firm is now in administration, consumers who had invested in Lehman-backed products with Arc Capital may be entitled to compensation from the Financial Services Compensation Scheme. These investors and those with other investments through the firm have been told the administrators will write to them within the next seven days.
A more detailed letter advising the various options that are available will follow as soon as possible.
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