FSA rebuffs Arch cru investor consultation claims
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The FSA has rejected Arch cru investors’ claims that it should have consulted on the £54m compensation package between Capita Financial Managers, BNY Mellon Trust & Depositary and HSBC Bank.
The deal announced in June should offer around 70 per cent of the net asset value of funds when the range was suspended in March 2009, when combined with distributions already made and remaining assets. Investors going to the Financial Ombudsman Service will have potential compensation capped at the levels of the package.
Last week, Money Marketing reported that Regulatory Legal has sent a pre-action protocol letter to the FSA, Capita, BNY Mellon and HSBC ahead of a planned judicial review on behalf of 2,700 investors. It questioned why the scheme had been set up without an “extensive period of formal public compensation.”
In a response to Regulatory Legal this week, the FSA accepts it is required to consult before initiating a consumer redress scheme but says there is no requirement to do so where firms’ permissions have been varied, as is the case with Capita, BNY Mellon and HSBC.
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Readers' comments (2)
Peter | 3 Nov 2011 9:52 am
What is being hidden here?????????
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Anonymous | 3 Nov 2011 3:42 pm
Peter----MUCH is being concealed !
But what is meant by the FSA comment that no Consultaion required if a "firms permissions have been varied "??
Sounds as if Capitas'( ex FSA??) Lawyers are really earning their massive fees by using ANY means to conceal the facts from Investors and avoid properly Fair& Reasonable Compensation .
Protect the FSA/Capita --silence/short change the small Savers/Retirees who can't afford City Law Firms seems to be the strategy !
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