Court rejects Arch cru judicial review for a second time
The High Court has rejected campaigning group Justice in Financial Services’ application for a judicial review of the FSA’s Arch cru compensation package for a second time.
An oral hearing was held at the Royal Courts of Justice in London this morning following the application being rejected last month.
Joe Egerton, who leads JFS, filed the claim in September on behalf of Coull Money, an IFA which recommended the funds.
The FSA agreed a £54m compensation package in June between Capita Financial Managers, BNY Mellon Trust & Depositary and HSBC Bank.
The deal was estimated to return investors around 70 per cent of the value of the funds as at March 2009 when the range was suspended, when set alongside distributions already made and remaining assets. Latest valuations from Capita put this figure at 66 per cent.
Egerton says: “The FSA appears to be in a position where it can make whatever rules it likes. We are considering whether or not to appeal.”
Regulatory Legal is seeking a separate judicial review of the compensation package on behalf of 2,700 investors. A decision on the application was expected last month but this has been pushed back after Regulatory Legal amended its claim in light of the £150m legal action being taken against Arch Financial.