NDF investors still waiting for FSCS claim forms

NDF investors who are disputing the FSCS's ruling they are ineligible to claim compensation are still awaiting the forms to make their case.

The FSCS told the 2,000 investors in the structured product provider's Lehman-backed Capital-at-Risk products on 30 September that they would not automatically qualify for compensation.

But it said investors wishing to submit a claim for any specific other reason could do so by e-mailing the Scheme to request an application form.

However, the FSCS has yet to send out the forms, and says it "hopes to do so this week".

Some investors had reportedly been told by the FSCS there was a five week wait for compensation forms.

In one unconfirmed report, an investor was told the delay was due to the FSCS stationery cupboard having run out of forms but this is denied by the compensation body.  

By comparison, the FSCS issued compensation forms to Keydata investors the following day after it announced on its website they were eligible to make claims.

NDF investors are also claiming the FSCS are inconsistent in agreeing to send out claim forms to investors in 'Capital at Risk' plans.

IFAonline is aware the Scheme has agreed to send forms in some cases for the NDF Fixed Income or Growth Plan (issued February 2008), the NDF Fixed Income Plan (issued June 2008), and the DRL Kick Out Performance Plan (Issue 1).

But other investors with the same plans have been asked for further justification before being put on the list for a form, and one person with the NDF June 2008 plan had their request rejected.

Remaining investors must prove they lost money because NDF or Defined Returns failed to warn them of the inherent risks in the sale or promotion of the structured products involved.

Last year, the Scheme said it would be offering compensation to the 1,700 investors in the 'Capital Secure' products backed by the collapsed firms.

NDF and DRL went into administration on 14 October 2009 while Arc went into administration on 26 October 2009. The FSA determined NDF, DRL and Arc to be "in default" on the same date the respective firms went into administration.

The FSCS has also recently been accused of inconsistencies in dealing with Keydata investors' claims for compensation.