The Government has rejected calls for a parliamentary debate into the Arch cru debacle.
The £400m Arch cru fund range was suspended in 2009 in a move which has left thousands of investors with unknown losses. The FSA and administrators for the fund have since announced a £54m package which, alongside assets already distributed and remaining assets, is designed to compensate investors around 70 per cent of the published net asset value of the funds when they were suspended.
Speaking on Friday, leader of the House of Commons, Conservative MP Sir George Young said the details of the package were a matter for the FSA.
He said: “I am sorry to hear about the investors who lost their funds in the Arch cru debacle. The FSA has announced a £54m package for the investors. This is a matter for the FSA.”
He was responding to a question from Conservative MP for the Vale of Glamorgan, Alun Cairns, who called for the debate saying it was needed because of questions about the adequacy of the compensation package.
He said: “Some 20,000 people were left hanging when the funds was suspended two years ago. A compensation package has been offered by some of the stakeholders involved, but it is highly conditional and seems quite inadequate. May we have a debate on the administration and regulation of Arch cru investment fund?”
Regulatory Legal says many of its Arch cru clients have suggested they are likely to reject the compensation deal.