IFA Centre is attempting to take legal action against Capita on behalf of Arch Cru investors who are not covered by the FSA’s consumer redress scheme.
IFA Centre has teamed up with law firm Harcus Sinclair to put forward a case against Capita Financial Management and has sent a letter to advisers which they can forward to clients to make them aware of the possible legal action.
It will look to represent investors who are not covered by the FSA’s consumer redress scheme.
Under the terms of the redress scheme, Arch Cru investors will be contacted by their adviser to ask if they want their case reviewed to determine whether they were missold.
Investors not covered by the redress scheme include execution-only investors, clients of discretionary managers, those whose losses exceed £150,000 and professional trustee investors.
IFA Centre managing director Gill Cardy says: “Our case will pursue matters which do not appear to have been explored by other legal firms or action groups, and as a result we believe this may now yield the best, or maybe the only, chance of success in obtaining appropriate compensation for all investors, including a significant number whose losses can never be recovered through the FSA’s scheme.”
Highclere Financial Services partner Alan Lakey says: “In my experience even getting a judicial review is a lengthy and costly process and it is always difficult to fight a large organisation with huge resources at their disposal.”
Capita declined to comment.