Capita Group says that its decision to contribute to the £54m CF Arch cru compensation package to investors is not an “admission of liability” over the collapse of the £400m fund range.
Capita, which acted as the authorised corporate director of the range, has also revealed that its contribution to the package will not exceed the £30m provision made in its 2009 accounts and that no financial penalty will be brought against the firm by the FSA with regards to the CF Arch cru fund range.
The FSA will publish a statement in relation to Capita Fund Managers role in the Arch range but has confirmed that no financial penalty will be brought against Capita but would comment on any other parties involved in the saga.
The Arch cru fund range was suspended on March 13, 2009, following liquidity concerns. Earlier today, the FSA announced a £54m compensation package had been agreed between themselves, Capita, BNY Mellon Trust & Depository Ltd and HSBC Bank.
In August last year over 1,300 investors sent complaints to Capita asking them to refund their original investment plus interest. The investors claimed that, as authorised corporate director, Capita is responsible for the losses suffered.
In the statement, Capita states: “The agreement, reached with the FSA without admission of liability, will help achieve certainty and finality for investors in the Arch Funds and thereby assist in reaching a conclusion of the matter.
“CFM’s contribution to the package is covered by provisions which were made in Capita’s 2009 accounts, and no further provisions in relation to the Arch Funds are anticipated to be required.”