Court rejects Arch cru review
The High Court has rejected campaigning group Justice in Financial Services’ application for a judicial review of the FSA’s Arch cru compensation package.
The group, led by Joe Egerton, has responded by requesting an oral hearing at the Royal Courts of Justice which is expected to take place at the end of January.
Egerton 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 refusal of immediate permission on paper is irritating but by no means uncommon. A very large proportion of judicial reviews are given permission to proceed only after an oral hearing, and a high proportion by the appeal court.”
Regulatory Legal is seeking its own judicial review of the compensation package on behalf of 2,700 investors. It expects to hear the outcome of its application this month.