The administrators of structured product providers NDFA and DRL say their priority is to confirm investor funds have been segregated from the firms' business accounts.
Grant Thornton is currently reviewing the firms' finances and although it believes from the limited information it has received that client money has been segregated, futher confirmation is needed.
The providers went into administration today as they were unable to meet their liabilities for potential compensation claims for Lehman-backed structured plans.
Around 35,000 customers will be affected, although only around 10% of these are invested in Lehman-backed products.
While investigations are underway, investor cheques will not be banked. Investors will also be unable to redeem their investments or receive income under their product plans until the review is completed.
However, there are five products which have yet to be invested and Grant Thornton believes money invested here has been placed in a client money account which is separate from NDF's own money.
These products are the Defined Income Plan August 2009 which is now closed and was due to be invested in the underlying securities on 16 October 2009. Four plans also remain open: The Royal Deposit Plan, The Autopilot Plan, The Navigator Plan and The Skyline Plan.
The administrators are currently considering whether these plans will be invested as per the application form and issue document.
NDFA and DRL's business and assets will also be put up for sale and although operations have been suspended, they are being kept fully staffed.
Clients who had invested in Lehman-backed products with either of the firms may be entitled to compensation from the FSCS as they have been placed "in default" from 14 October.
On the basis on information provided by the FSA, the FSCS had begun looking into Lehman-backed products.
Its preliminary findings indicate at least some of the marketing materials used by the firms may not comply with their regulatory obligations and may give rise to valid claims.
The FSCS will assess whether it will pay compensation depending on the facts of each case.
Investors will be contacted by Grant Thornton within a week and there will be a more detailed letter within 28 days outlining their options.
More information is available on 0844 770 2203 or via www.ndfa.creditorhelpline.co.uk
The FSA will publish the full findings of its review into structured products later this month.
