Prime Minister David Cameron says he will look “very carefully” at opening an inquiry into the Arch cru debacle.
In October, Labour MP Tom Greatrex and 10 other MPs called for an inquiry into Arch cru during a Westminster Hall debate. Treasury financial secretary Mark Hoban said he was “yet to be persuaded” that an inquiry is appropriate.
During Prime Minister’s Questions last week, Greatrex, who is co-chair of the all-party Parliamentary group on Arch cru, said 20,000 people have lost money and he called on Cameron to launch an inquiry.
Cameron said: “I have had contacts from my constituency who lost money because of this and are concerned what is happening. I am following the fact there has been a Westminster Hall debate on this and the minister set out the position in terms of the responsibility of the FSA. I will look very carefully at what he says and see if we can do more.”
Greatrex says: “The dead hand of the Treasury has so far blocked any investigation into what went wrong. It is time for the Prime Minister to step up and put himself on the side of the victims.”
In June, the FSA, Capita Financial Managers, BNY Mellon Trust & Depository and HSBC Bank agreed a £54m compensation fund. Alongside distributions already made and remaining assets, investors should get back 70 per cent of their investment when the range was suspended in March 2009. Anyone taking compensation must accept it as a full and final settlement aga-inst these firms but can make further claims against their IFA.
Forty Two Wealth Management partner Alan Dick says: “I abide by the principle that polluters should pay, so an inquiry that gets to the bottom of who was responsible for this fiasco and who should pay compensation would be welcome.”