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FSA and Capita role in Arch cru to be raised in parliament

The FSA and Capita Financial are both set for further scrutiny over the collapse of the £400m Arch cru fund range.

The role of the regulator and Capita, which acted as administrator of the Arch cru fund range, will be raised by Conservative MP Alun Cairns, who says he is representing several constituents caught up in the affair.

Cairns says he has also received hundreds of complaints from investors after he showed concern.

The Arch cru fund range was suspended in March 2009 in a move which has left up to 20,000 investors with unknown losses. The range was authorised by the FSA while investors believed the funds were ‘low to medium risk’.

Speaking to the Mail on Sunday, Cairns says: “My aim is to raise the awareness of cru. It’s totally unacceptable – 20,000 investors have waited two years with no information.

Capita, which suspended the funds, has been selling off the remaining assets, with money slowing coming back to investors. A review into what parties should be responsible for compensation is being undertaken by both the FSA and Capita.

Cairns says: “We need to intensify the pressure on both the FSA and Capita. The debate will require the Government to respond with its view on what happened.”

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