|
|
26 Oct 2009
The combination of a Financial Services Authority investigation into structured finance products and the collapse of Lehman Brothers has led to the administration of investment company Arc Capital & Income.
Robin Davis, John Alexander and Melvyn Carter of accountancy firm Carter Backer Winter have been appointed administrators for ACI this week.
The FSA review looked at the UK's structured finance products market including any backed by collapsed company Lehman Brothers.
ACI conducted an assessment of their financial position in relation to claims by investors of Lehman-backed products and found if claims were upheld ACI would have no choice but to become insolvent.
The directors then decided to place ACI into administration.
Alexander said: “We are committed to working with the FSA and the Financial Services Compensation Scheme (“FSCS”) to protect the interests of both the investors and the creditors. In particular, we are working very closely with the FSCS, FOS and the FSA to ensure compensation will be paid to investors where due”.
"We are committed to protecting the interests of investors. On information reviewed to date it appears that their funds have been segregated from ACI’s own monies and our first priority is to confirm that this is the case. Until we ascertain this, no funds will be able to be returned,” he added.
The ACI produced financial products for the investment market, many of which were backed by Lehman Brothers. The distribution of these products has been subjected to FSA review.
The administrators said they will continue to work with the FSA and the Financial Services Compensation Scheme to help protect investors' interests.
Further reading:
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment