E&Y and HSBC criticise Capita for Arch cru role
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Arch cru funds auditor Ernst & Young and depository HSBC have both criticised Capita for failures in its role as auth- orised corporate director of the Arch cru fund range.
In the CF Arch cru diversified funds annual report, E&Y says Arch cru did not account for the funds’ underlying Guernsey-listed cell companies as part of the accounts.
The statement says: “In view of the effect of the failure to consolidate the entities referred to above, in our opinion, the financial statements do not give a true and fair value, in accordance with UK generally accepted account- ing practice.”
In the same annual statement, HSBC says there were a number of occasions when Capita failed to manage the scheme according to the appropriate powers.
The depository highlights a number of issues, includ- ing two material pricing errors, 11 immaterial pricing errors, four instances where the manager held cash with one institution that was in excess of 20 per cent of the net asset value, a failure on one occasion to issue a qualified depository report to shareholders and that annual and interim reports and accounts in respect of the relevant periods covered by the report were not published as required by the Collective Investment Schemes Sourcebook.
A Capita spokeswoman says: “We do not believe that the preparation of consolidated accounts would result in any material impact on the net asset value or the company and the auditors have not indic- ated to us that they believe otherwise.”
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