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Capita takes £17.9m hit over Arch cru

Capita has taken a £17.9m hit in costs in its 2011 results following the collapse of the Arch cru fund range.

The costs represent Capita’s contribution towards the £54m compensation for Arch cru investors. In June 2011, the FSA announced that Capita Financial Managers, BNY Mellon Trust & Depository Ltd and HSBC Bank had agreed to contribute to a £54m fund, which will be used to make payments to the eligible investors in the CF Arch cru Funds.

Capita was authorised corporate director for the funds, which shut due to liquidity problems in March 2009.

Capita set aside a £30m provision for potential losses arising from the debacle in its 2009 results. Capita directors anticipate no further provision being required.

Capita revealed it made £385.2m of pre-tax profits in 2011, a 6 per cent rise on the £364.2m in 2010.


Annuity rates hit by double whammy

Savers face continued short-term annuity uncertainty as fluctuating gilt rates and inflation hit the annual payments offered by product providers. Figures from Alexander Forbes Annuity Bureau show that several insurers decided to cut single-life and inflation-linked annuity rates in February. The analysis, which is based on a 60-year-old male with a £100,000 pension pot, shows […]


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