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Cru asks FSA to back changes

Cru founder Jon Maguire is calling on the FSA to allow the firm to restructure its £400m Oeic range after claiming Capita would not sanction the move.

As revealed by Moneymarketing.co.uk, cru is looking to introduce a monthly subscription date and a redemption facility to the suspended funds to allow up to 5 per cent of assets to be taken out every three months, after which redemptions will be pro rata.

Cru has admitted it does not have the information on the fund’s portfolios and warned it is a “dangerous task” to price them in the current market.

Maguire has written to FSA managing director of retail markets Jon Pain after claiming fund administrator Capita rejected the plans on the grounds that the move may not be legal. Maguire says he has not been told why that is the case. The letter has also been sent to Capita and Arch. He says: “We do not see the problem with a proposed restructure, provided all the shareholders approve. We are trying to be proactive on this but are being met with a wall of silence. What we need in these times is flexibility.”

Capita says it has not committed to take any course of action on the Arch cru funds, which were suspended on March 13. Maguire claims he has received a letter from the firm rejecting his proposals.

Maguire says, under his proposed structure, Capita would set the net asset value of the funds at the end of each month. He says the funds are due to reopen on April 9 unless the FSA agrees to extend the suspension.

He says £1m of cru assets is invested in Africa Invest. Maguire and other Africa Invest directors are to tour the UK in April and May to promote the launch of the Africa Agri fund despite IFA concerns that he should focus on cru.

Dennehy Weller & Co managing director Brian Dennehy says: “It is down to the regulator, it is not down to the shareholders. I cannot see the regulator putting themselves out for the sake of this when they are still trying to hold together the world’s financial system with bits of string and Sellotape.”

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