Administrator shuts NDFA Defined Income Plan

The joint administrator of structured product provider NDFA has confirmed it will not be progressing with the Defined Income Plan August 2009.

The plan was due to progress to investment today (19) but Grant Thornton says its priority is to reconcile client monies and opening the plan would be "unfair".

Providers NDFA and DRL went into administration on 14 October as they were unable to meet liabilities for potential compensation claims for Lehman-backed structured plans.

Grant Thornton says under FSA rules the administration triggers a primary pooling event. It says this effectively means all client accounts are frozen whilst the joint administrators verify all client monies are accounted for.

"The tight timescales involved in this plan and the level of verification required to reconcile client monies has meant that the investment cannot commence," a statement reads.

"Furthermore, the joint administrators, together with the FSA, believe that, in light of the administration of NDF (the plan manager), investors may wish to reconsider the investment, as such progressing with the plans would be unfair."