Up to £66m in compensation over the failure of the Connaught Income Fund is now on its way back to investors, the FCA has said.
In November, the FCA released a critical report on Capita Financial Managers Limited, the fund’s authorised corporate director, and agreed the settlement for investors who lost out.
However, a number of complaints over the FCA’s handling of the collapsed have been made to the Complaints Commissioner.
The adjudicator has decided not to uphold the complaints until after a third party has finished conducting its own review, which will be appointed once the FCA finishes its investigations.
The FCA said in a note yesterday: “The FCA welcomes the Commissioner’s decision not to uphold the complaint pending the relevant review by an external third party, which we have agreed to carry out.
“The public censure brought to an end the FCA’s investigation in relation to CFM. Other aspects of the FCA’s investigation into the operation of the fund are continuing. The FCA will normally publish the outcome of enforcement action.”
The Connaught fund invested in a number of high risk loans before it was suspended in 2012.
As MPs also reviewed the fund they asked questions on why advisers had recommended the unregulated investment, but many have argued that the blame has been unfairly shifted to the IFAs after the collapse.