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Adviser trade body resurrects MP review of Connaught collapse

Parliament-Fog-UK-London-2012-700x450.jpgAdviser trade body Libertatem is resurrecting a cross-party group of MPs to re-examine the failure of the Connaught fund.

The Connaught Income Series 1 fund entered liquidation in 2012, with investors facing loses of up to 50 per cent as interest payments were withheld.

A formal All Party Parliamentary Group was run to review the Connaught collapse after its liquidation, but was wound down in 2015. MPs were meeting on an unofficial basis until the most recent general election, according to Libertatem director general Garry Heath, but activity had stopped.

Many of the APPG members have lost their seat since the formal group was established, but the group will now formally register again and will send letters to MPs about the cause.

The group will be chaired by Waveney MP Peter Aldous, and is also being assisted by former MP Andrew Bingham, Money Marketing understands.

Heath says: “The reason for doing it is to make sure we are holding feet to the fire, making sure there’s no backtracking, making sure there’s still political interest.”

The first meeting is set to take place next month.

Parliamentarians at the time of the collapse were split, with some questioning why the unregulated fund was being recommended to investors by advisers, with others probing authorised corporate director Capita and the FCA’s oversight role.

The FCA kicked off an investigation of the collapse last year. In November, it ordered Capita to repay up to £66m to investors. A third party review will also begin once the FCA has finished its investigations into the operation of the fund outside of Capita’s involvement.

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  1. Yet another UCIS mis-sold en masse by supposedly FSA-regulated advisers. What was the regulator doing to stop such practices snowballing into the horrendous mess that Harlequin eventually became?

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