NDF Goes Into Administration
Published / Last Updated on 13/10/2009
by Ashley Clark, Director
Specialist ‘structured products’ provider, NDFA and its sister DRL have gone into administration.
Structured products are those special investment plans with things like “40% Guaranteed Growth after 5 Years” or “Guaranteed Stockmarket Plan” or “7% pa Income for 5 Years”.
These are usually underpinned i.e. guaranteed by a series of derivatives and securities issued by major banks and investment companies.
Much of the NDFA and DRL assets were backed by Lehman Brothers structured plans. Lehman Brothers, the giant American investment bank failed earlier this year
Administrators, Grant Thornton, have confirmed that investor money is 'ring fenced' so much is protected. In any event, there is also the UK investor compensation scheme to protect investors. At the present time, no existing investments can be cashed in nor will income be paid from ‘income’ based plans.
In addition, there are five NDF products that were technically still open until yesterday waiting to be vested, the Defined Income Plan now closed and due to be invested tomorrow plus four others: The Royal Deposit Plan, The Autopilot Plan, The Navigator Plan and The Skyline Plan. All these are thought to be in separate holding cash accounts, waiting to be invested. So some people may get their money back early.
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