Investors who lost money after the collapse and suspension of the Connaught Income Fund in 2012 will now have to wait for the FCA to seek specialist tax advice before redress payments can be distributed.
Although administrators Duff & Phelps have now received previously missing data needed to complete the redress calculations, the regulator has said concerns over interest will cause yet another delay.
It was initially expected that one of the firms involved, Capita Financial Partners, would turn over all required funds to the FCA by 31 March, with the distribution of repayments to be carried out across April.
In an update to investors today, Duff & Phelps says it will finalise individual calculations after the regulator has sought the tax advice.
Duff & Phelps says: “Following a number of queries raised by the investor and IFA community, the FCA is seeking specialist tax advice in respect of the treatment of interest on the redress payment and the distribution process. We will resolve these matters as expeditiously as possible.”
The FCA initially said around £66m in compensation was “on it’s way back to investors” in January.
Money Marketing reported that in the wake of the FCA’s announcement of its review of the collapsed fund, initial estimates suggested investors faced losses of up to 50 per cent.
Money Marketing has received correspondence from many investors expressing frustration over continuing delays.
One investor says: “While I suspect funds will be forthcoming shortly what I am really concerned about is the promised FCA report into “other parties” and then the independent inquiry into its own abject failure.”