IFA Centre managing director Gill Cardy is set to meet the chairman of the Arch cru all party parliamentary group today to discuss the FSA’s proposed £110m consumer redress scheme.
MP for the Vale of Glamorgan and Arch cru APPG chairman Alun Cairns invited Cardy (pictured) for a meeting following her submission to the FSA’s consultation on the scheme, which closed last month.
If implemented, the redress scheme will require IFAs who recommended Arch cru funds to review their sales and pay redress where appropriate.
The FSA has met with fierce opposition to the scheme since it published its consultation in April.
In Cardy’s consultation submission, she argued the scheme overlooks the fact the Arch cru fund range was made up funds with different risk profiles so could not be all be “high risk”. Cardy also pointed out that investor losses may be due to maladministration of the investments, rather than advisers’ failure to demonstrate suitability.
Cardy says: “All parties have an interest in making sure there is an equitable solution which ensures investors are fairly compensated for their losses whilst advisers are not unfairly penalised by the proposals.”
“The majority of IFAs who have no exposure to Arch cru will be penalised as Financial Services Compensation Scheme levies are bound to increase as firms fail. This simply cannot be in anyone’s interests. I look forward to discussing areas of common concern with Mr Cairns.”
The FSA is expected to put out a policy statement in November if the Arch cru redress scheme is approved.