Arch cru investors who agree to an FSA £54m compensation package will still be able to make a claim against their IFA.
The deal, agreed between the regulator and Capita, BNY Mellon & Depository Ltd and HSBC Bank this week, is designed to give investors around 70 per cent of net asset value of the fund range’s assets when it was suspended in March 13, 2009, when added to previous distribution payments and remaining assets.
Investors taking the compensation must agree it is in full and final settlement of any claims against the three firms. However, the FSA has confirmed that investors can still make a claim against their IFA.
The FSA says it is still considering the role of other parties in the Arch cru debacle.
A statement from the FSCS says: “The FSCS is considering the implications of this development for claims that it has received arising from investments made by claimants in these funds. These claims for compensation have been made against various Independent Financial Advisors that are no longer trading. We will provide further information about our position to claimants as soon as we are able to.”
Informed Choice managing director Martin Bamford says: “There are unresolved issues over who was at fault for the suspension and those IFAs who sold the products heavily.”
Churchill Investments director Chris Gilchrist says: “Given the amount of anxious people there have been, I am sure that most will take 70 per cent of the investment and draw a line under this. The FSA still has questions to answer and accountability of others must still be looked at.”