Maguire has yet to reveal full details of the launch, but says it will allow IFAs to invest money directly with asset-backed investment managers and will not be using a “middleman” such as Arch.
The £363m Arch cru range was suspended in March 2009 due to liquidity concerns because of the size of redemption requests. The underlying cells lost £140m between March 13, 2009, when the range was suspended, and September 30, 2009. Individual funds lost between 20 per cent and 40 per cent over this period.
He says: “The launch will be ignoring listed market securities completely. The gloves will be off and I shall be having it out with the listed market products that do not work.
“It will bring brand new asset backed investment managers to the industry that IFAs will have direct access to, unlike the cru scenario where you had to go through another body such as Arch.”
Hargreaves Lansdown head of research Mark Dampier says: “Given what happened in the past I think the investment community will be a bit sceptical.”