Arc Capital & Income (ACI) has become the third UK provider of “capital guaranteed” structured products to go into administration in the space of two weeks, following a Financial Services Authority investigation into the marketing of plans backed by the bankrupt US bank Lehman Brothers.

Of the 10,000 private investors with ACI, approximately 250 had a total of £5.75m invested in the group’s three Lehman-backed products: Arc Fixed Income Plan 6, Arc Stepped Kick Out Plan 5, and Arc Bull and Bear Enhanced Investment Plan 3. These investors may now claim compensation of up to £48,000 each from the Financial Services Compensation Scheme, after ACI was declared formally “in default” by the FSA.