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FSA drops investigation into cru founder Jon Maguire

The FSA has dropped its investigation into cru founder Jon Maguire, Money Marketing understands.

The regulator initially began investigating Maguire in 2011 for the financial management of cru and his conduct as the controlling director of a regulated firm.

Maguire led marketing efforts to promote the range to IFAs and caused controversy by attacking commentators who expressed doubts about the range in Money Marketing.

Maguire is not currently active on the FSA register.

The £360m Arch cru fund range was suspended in March 2009 due to worries there was insufficient capital to meet redemptions.

The FSA agreed a £54m payment scheme between authorised corporate director Capita Financial Managers and depositaries BNY Mellon and HSBC in June 2011. In November the FSA censured Capita for failures in its role as ACD, but chose not to fine the company saying Capita could not afford both a contribution to the payment scheme and a financial penalty.

Separately, the FSA announced in December 2012 it will introduce a consumer redress scheme for Arch cru investors where advice was unsuitable. Consumers will have to opt in to have advice reviewed, with the FSA estimating the scheme will pay between £20m and £40m in redress.

The regulator is also seeking to ban Arch Financial Products chief executive Robin Farrell and senior partner Robert Addison and fine them a combined £850,000 for “reckless failures” relating to failures in their role as Arch cru fund manager.

The FSA also wants to issue a public censure against Arch FP and says it would have fined the firm £9m for its misconduct, but the firm does not have sufficient resources and may be subject to claims from future creditors.

Arch FP, Farrell and Addison have referred their cases to the Upper Tribunal.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Well, typical of the FSA. Badly manage the whole Arch CRU affair and dump the liability on the poor adviser community and stop pursuing the guilty party.
    He was a cad and a scoundrell and he should be hung out to dry!. Well done FSA yet another blunder.

  2. Old school tie network clearly still in full working order – this stinks of it – “Lets put the IFA’s in the firing line, they have PI cover, meanwhile, we can all walk away and claim to have done a good job” said Mr FSA when asked to comment!!!!

  3. Yep!
    It really is easier to goo after “the little guys”

  4. If Capita’s capital adequacy is so bad surely they should be suspended from their many roles in the Financial Services arena?

  5. My lawyer is bigger than your lawyer !!!

  6. When you see the damage this man wrought and his (to be polite) rather odd take on life one wonders what cogent reasons the FSA can give for not perusing this more rigorously.

    We now have two prominent people who have wrought untold damage without any penalty – Mr Jon Maguire and Mr Stewart Ford of Key Data. They walk away while the distributors of their less than perfect products are left to pick up the pieces – all this after our dear Regulator missed the ball in the first place. Do you wonder what IFAs consider themselves scapegoats?

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