FSCS updates Arch cru investors
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The Financial Services Compensation Scheme has told CF Arch cru investors it is working as quickly as possible to resolve issues around potential adviser liabilities and how to value the funds in order to pay compensation.
The FSA announced a £54m compensation package for CF Arch cru investors in June. The FSA, Capita Financial Managers, BNY Mellon Trust & Depository and HSBC Bank have agreed the fund which will be used to make payments to eligible investors in the CF Arch cru investment funds and the CF Arch cru diversified funds.
In an update published today, the FSCS says the compensation package has implications for the claims it has received against IFAs.
It says the FSCS has been considering the duties and obligations of those advisers at the time they recommended these funds to clients. The FSCS says this will enable it to reach a view on whether the advice given could give rise to liabilities to investors.
The FSCS is also looking at how it would value the CF Arch cru funds, if compensation was payable in relation to the funds. Spearpoint is overseeing the orderly wind-up of the funds, meaning the FSCS will have to work with Spearpoint in order to value the funds.
The FSCS says if payments are made from the £54m compensation package announced by the FSA, the compensation scheme will need to take into account these payments when calculating potential compensation.
The FSCS says: “Our work on these two issues is ongoing. However, we would like to assure investors that we are working as quickly as possible, and will provide more certainty about our position to claimants as soon as we are able.
“We will provide a further update on our website when we have more information.”
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