The FCA has given the all-clear to adviser firms with low Arch cru opt-in rates, saying a sample review of firms found nothing of concern.
In October the FCA raised concerns that opt-in rates for its Arch cru consumer redress scheme were considerably lower at some advice firms compared to others.
The regulator wrote to a sample of 30 adviser firms with low consumer opt-in rates asking them to explain why their opt-in rate was significantly below the industry average, and said it would contact a sample of clients after receiving firms’ responses.
Firms that were contacted had an opt-in rate of 20 per cent or less, compared to an average of 48 per cent across all firms.
But the FCA says no further action will be taken as a result.
A spokesman for the FCA says: “We wrote to firms and some of their customers to make sure there was no reason why opt-in rates would be lower. We found nothing that caused us concern.”
In December 2012, the FCA estimated that between 15 and 30 per cent of clients who were advised to invest in Arch cru would opt in to the scheme, resulting in total payouts of between £20 and £40m.
In an update published today, the FCA says 48 per cent of consumers have opted into the scheme, and compensation will total £31m.