FCA seeking tax advice on Connaught redress

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.”

FCA orders review into Connaught fund collapse

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.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. As an investor myself, this is getting ridicoulous. Not only because of the Delays, but also we get shut down everytime we ask for an uodate about our own compensation. The calculations of which were meant to have been completed back in March. This site is literally the only way i have been able to find updates.

    It wasnt our fault we were wrongly advised to invest, so why are we now looking to be losing out on half of our investment now years after the fund collapsed. Im writing this here because no one else will talk to us from my experience of this.

    • I don’t know how other investors in the Connaught fund are feeling but I am getting more and more frustrated by the lack of information and delay after delay. I would like a timetable for statements and compensation that is kept to.

      Is there light at the end of the tunnel and if so when?

  2. Can anyone shed light on how D&P have performed their calculations as to potential losses for investors?
    My IFA advised me that my late mother’s estate had, by their calculations, lost approximately £36k from an initial £100k investment (after a number of partial withdrawals)
    D&P – with zero explanation of how they come to any values – have written to suggest an approximate capital recovery of £12k plus net interest of £0.8k; and gave a cut-off date of three weeks, or otherwise would assume acceptance of these figures.
    Needless to say, I have challenged them -with support of my IFA – but what are views of others as to D&P’s “performance” as fund administrators?
    Where do their figures come from, and/or are all investors going to take a 70% loss on their investment in Connaught as they suggest I do?

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