Capita Financial Managers has paid £51m of its compensation bill to the FCA over its role in the collapse of the Connaught fund, but investors are yet to receive their money back after processing payments hit delays.
A note on adminstrators Duff & Phelps’ website says that while Capita met its 31 March deadline to turn over funds to the regulator, compensation over the collapsed Connaught Income fund will not be completed until May due to missing information.
The update says: “The calculation process requires the collation of investor transactional data. This process has taken longer than projected due to delays encountered in receiving and processing this data from third parties.”
“Certain data remains outstanding at the point of this update however it is currently expected that all final data will be received in the coming weeks and that the calculation will be completed by the beginning of May.”
Investors waiting on compensation over collapsed and liquidated Connaught Income fund have criticised the FCA on its lack of communication.
One investor says: “It’s quite extraordinary FCA indicated the matter would be resolved by 31 March. There’s nothing on their website to indicate why there has even been a delay. All their talk about it being utmost priority is stuff and nonsense. It is rude and inexcusable to have absolute silence from them.”
While the FCA placed the 31 March deadline to receive the funds from Capita, it did not say that this is when investors themselves would have their compensation back.
Duff and Phelps was appointed by the regulator to complete an independent redistribution of the compensation.
A number of complaints over the FCA’s handling of the repayments process, however, were rejected by the Complains Commissioner in January.
Duff & Phelps say investors will not receive any further communication until “the stage when redress statements are being sent out.”
Capita was given until 31 March to pay compensation of £66m to a nominated party for the regulator to distribute. Duff & Phelps confirms the remaining £15m of this sum is in a separate ring-fenced account, controlled by both Capita and the FCA, until repayment calculations are finalised.
The total £66m in compensation is nearly double the £37m set aside by CFM last September after the FCA’s initial indication that it would take action over the fund.
The first FCA review into the regulation of firms connected with the Connaught Income fund was in December 2016.