Investors who lost money after the collapse and suspension of the Connaught Income Fund in 2012 have been told redress payments will start by 27 October.
Investors tell Money Marketing that joint communication from administrators Duff & Phelps and the FCA outlines figures owed for individual cases and gives until 25 September for responses to queries.
The FCA ordered the first independent review of the Connaught fund in December 2016 and ruled in November that Capita Financial Managers Limited, the fund’s authorised corporate director, should pay affected investors compensation worth up to £66m by 31 March.
The redress has hit a number of setbacks this year however, including a delay while the FCA sought specialist tax advice.
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 of their investments.
Money Marketing has received continuing correspondence from advisers and investors expressing frustration over continuing delays and lack of communication from the regulator.
Despite confirmation that redress will be paid out in 60 says, an investor says: “None of this explains the extraordinary delays, and the loss of opportunity for growth of the money had it been invested elsewhere.”
Investors should get their capital refunded, with interest, calculated at a simple rate of 0.52 per cent.
Any income received, distributions or dividends paid by the liquidator, or compensation payments will be deducted from the final settlement.
The FCA declined to comment further.