Several fund managers have transferred away from Capita Financial Managers as authorised corporate directors after the Arch Cru debacle.
Capita announced in February that it would divest itself of ACD clients if it considered there was excessive risk or insufficient rewards after a review which followed the failure of the CF Arch cru funds, where Capita acted as ACD.
OPM Fund Management chief investment officer Tony Yousefian says he left Capita in March because of a rise in charges and concerns about service.
Yousefian says: “We did not have too much of a problem if things were running smoothly but we did have a few issues that they had to resolve.
We did feel that we were checking their work too much, too often.”
Rival ACD provider Phoenix Fund Services’ director Gerard Quirke says: “We are getting an awful lot of interest from people who have had their business with Capita and we are deligh-ted to talk to these clients.”
Money Marketing has heard from several other asset managers who have left Capita but are unable to speak publicly due to concerns that they may face legal action from the group.
Capita has allocated £30m to cover costs resulting from the CF Arch Cru debacle, which lost £140m in value between March 13, 2009, when it was suspen-ded, and September 30, 2009, when it was revalued.
A Capita spokesperson says: “We are confident that we provide a high quality ACD and fund admin solution which enables investment managers to focus on fund distribution and investment activities.”