Fall out from Lehman Brothers continues
Arc Capital & Income enters administration following the collapse of Lehman Brothers
Arc Capital & Income enters administration following the collapse of Lehman Brothers
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:
Lehman Brothers anniversary timeline
PwC returns to court to fight for Lehmans plan