Retail clients who had bought ACI products lost their capital last year when Lehman Brothers, the investment bank backing the investments, went under.

A review by UK regulator the Financial Services Authority, due to be published later this week, has identified flaws with the marketing material used by firms that offered Lehman-backed products. Arc was advised by the FSA that, due to issues with its marketing of products, clients could potentially pursue compensation claims against it.

Clients who have lost money can make a claim against a plan manager in administration via the Financial Services Compensation Scheme if they can prove the manager made a contribution to their loss. Misleading marketing materials may count as such a contribution.

ACI follows into administration fellow structured product providors, NDF Administration and Defined Returns Limited, who also distributed Lehman-backed investment vehicles.

Prior to their demise, structured products firm Keydata Investment Services entered administration in June. Although it did not directly sell products backed by Lehman assets, the firm became a casualty of a sector-wide crisis that began with the bank’s collapse.