ACI were involved in providing structured investment products to retail investors via Independent Financial Advisers (IFAs). They dealt with approximately 10,000 UK investors.

On 26 October 2009 it was announced that ACI had gone into administration. Robin Davis, Melvyn Carter and John Alexander of Carter Backer Winter LLP have been appointed as their administrators. They will take over the running of the company with a view to achieving a better result for the company’s creditors, including investors, than would be likely if the firm were wound up.

The firm’s administration will affect investors in ACI products in different ways, depending on when they invested in the product and who provided the underlying securities.

Some of the structured products sold by the firm in 2008 were backed by firms in the Lehman Brothers Group. The marketing and distribution of these products, along with the wider structured products market, have been subject to an FSA review. Full details of this review will be published at the end of October.

Customers who have bought structured products through ACI over the past five years.

The firm’s administrators will write to all investors with more information within the next seven days, followed by a more detailed letter as soon as possible letting you know of the options that are available to you.

They have also set up a dedicated helpline (0844 880 6511) and website which will provide updates when there is new information to report.

A list of all products sold by ACI, both non-Lehman- and Lehman-backed, are available on the administrators' website.

You do not need to do anything in the short term. The administrators will write to all investors with more information shortly.

Will I get my money back?
As the firm is now in administration, we have determined the firm to be ‘in default’ for the purposes of the Financial Services Compensation Scheme (FSCS).

On the basis of information provided by us, the FSCS has begun looking into products which were backed by Lehman Brothers. Its preliminary findings indicate that investors who have bought these products may be entitled to compensation. The FSCS will assess whether it will pay compensation, depending on the facts and merits of each case.

When will I get my money back?
The FSCS expects to process the majority of claims within six months of receiving them. If it becomes apparent that it will not be able to deal with a claim within this timescale, it will let claimants know.

What will happen to the complaint I have lodged with the Financial Ombudsman Service (Ombudsman) against ACI?
Complaints that were being considered by the Ombudsman at the time that ACI went into administration will be transferred to and considered by the FSCS. The Ombudsman will write to you to confirm that your case has been transferred to the FSCS.

What should I do if I have not complained but want to do so?
The firm’s administrator will write to you shortly advising you of the various options that are available to you.

What if I have a Lehman-backed structured product produced by another firm?
You are not affected by the administration of this firm.

Do I need to do anything?
You don’t need to take any steps now. The firm’s administrators will write to all investors within the next seven days, followed by a more detailed letter as soon as possible letting you know of the options that are available to you.

Just because the firm has gone into administration does not mean your product has been affected.

It is the administrators' responsibility to check the firm’s books. In the short term this could result in some delay in making income payments, but apart from that they will continue to undertake the administration of the plans while they look for a long-term solution.

It may not be in your best interest to cancel one of the investment products early, as you might get back significantly less than you invested.

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