Capita Financial Managers is facing a legal challenge from at least 900 Arch cru investors seeking compensation of almost £30m.
As the deadline approaches for investors to join a group litigation order against Capita, a steering group representing investors is urging wrap and platforms to contact further potential investors about the action.
A group litigation order was issued in October for investors who are not covered by the FCA’s consumer redress scheme to claim for losses resulting from Arch cru.
The order required Capita to provide Harcus Sinclair, the law firm representing the investors, with details of all investors who have not yet accepted compensation.
Now the Arch Cru Litigation Committee, a steering group which represents the interests of Arch cru investors, is writing to 40 wrap and platform providers including Skandia and Canada Life, asking them to pass on details of the litigation to all of their customers who invested in Arch cru.
Committee chairman John Hawkes says: “There are many investors in Arch cru out there who have no idea this litigation is an option for them. There may even be investors who do not know that they are actually invested in these funds.”
He says wrap and platform providers have an “obligation” to inform their clients about the action.
Harcus Sinclair says 900 investors have now joined the action, seeking compensation of almost £30m. This is almost double the number who had signed up to the action in November.
Investors have until 31 March 2014 to join the litigation process.
A spokeswoman for Capita says: “Any claims made against Capita Financial Managers will be vigorously defended and any such defence will be lodged through the appropriate channels at the relevant time.”