View more on these topics

Capita settles Connaught claims for £18.5m

Payment-Fine-Currency-Money-700.jpg

Capita has settled a claim brought against it as a former operator of the Connaught Income Series 1 Fund.

The firm’s half-year results, published today, show it paid £18.5m. It operated the fund – which was suspended in March 2012 – until September 2009.

The FCA is conducting a review into Capita and another firm’s role as operators of the fund. But Capita says it will not hold any cash against the outcome.

It says: “Due to the requirement to await the outcome of the formal review commenced by the FCA, the likely timeline for conclusion of this matter is uncertain.”

The results also reveal Capita has entered “full and final settlement” in relation to claims brought by Arch Cru investors. It does not reveal the terms of the deal but says the matter will be finished by the end of the year.

Capita paid £1.1m in professional fees relating to Connaught and Arch Cru in the half year.

The Connaught Series 1 fund was suspended in March 2012 and interest payments were not made to investors. A review was commissioned to ascertain its true value.

In 2012, Money Marketing revealed investors faced losses of up to 50 per cent. An independent review by Duff and Phelps suggested recoveries would be between £46.5 and £53.2m of the £105.5m used to fund Tiuta.

A decision to wind down the Series 1 and £18m Series 2 fund, which was used to fund another Tiuta subsidiary called Tiuta Development Finance, was made in June 2012. A Series 3 fund, which was not linked to Tiuta loans and raised around £22m, was wound down in July 2012 due to a spike in redemptions.

Connaught Asset Management bought Tiuta International and Tiuta Development Finance, the Tiuta Plc subsidiaries that used the Series 1 and Series 2 funds respectively, for £1 in June 2012. In July 2012, Money Marketing revealed Tiuta International had been placed into administration by CAM.

Recommended

Wayman-Caroline-FOS-2013 700 x 450.jpg
2

FOS records surge in Sipp claims

Sipp complaints rose 9.4 per cent in the second quarter, according to the latest data from the Financial Ombudsman Service. The FOS received 427 Sipp enquiries between April and June this year. The watchdog upheld 66 per cent of these. The FOS had 390 in the same period of 2015, upholding 51 per cent. The […]

7

MPs say Philip Green has ‘moral duty’ to save BHS pensions

Former BHS owner Sir Philip Green has a “moral duty” to repair the firm’s £571m pensions deficit, according to a damning Government report on the retailer’s collapse. A joint report from the Work and Pensions and Business, Innovation and Skills Committees says Green must to act now to help the BHS pensioners. It adds this […]

Charles Counsell 700 x 450
2

TPR slashes auto-enrol estimate by up to 480,000 firms

The numbers of firms who will have to comply with automatic enrolment regulations has been slashed by up to 480,000 firms. New figures from the Pensions Regulator shows it expects between 1.32 million and 1.46 million employers will have duties under auto-enrolment rules. At the same time last year, TPR estimated 1.8 million firms would […]

1

Opinion poll

The report (Money Marketing, October 25) that Marlborough Stirling&#39s research has found that 53 per cent of people prefer not to meet their financial adviser in person flies in the face of general perceptions. It also contradicts other (perhaps more disinterested) research studies as well. Typically, you would expect to find that some 70 per […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Why do Financial Service Companies still continue to use Capita who are making a Fortune.
    e

Leave a comment