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Maguire launches action group and on brink of bankruptcy

Cru founder Jon Maguire is setting up his own action group to tackle what he alleges has been the mis-management of the Arch-cru fund range.

In a document seen by Money Marketing, Maguire says a number of investors and IFAs alike have been calling on Maguire to set up an action group and Maguire says for 0.1 per cent, from the adviser and the investor, of each original investment he will set up the group to secure full compensation from Capita because he says they were responsible for the conduct of the investment manager Arch.

Maguire also says the suspension of the £400m range, and the subsequent debacle, has put him on the point of bankruptcy, having had no income since April 2009.

Maguire says he has failed to come to an agreement with Regulatory Legal, who themselves have set up an action group, given that they are still trying to blame his own firm cru. He says he will not support them until they recognise that it was the investment management that has failed.

A statement from Capita says: “We appreciate that shareholders may be concerned about the implications of the fall in the value of the cells on their investment in the fund, and their ongoing inability to sell their shares in the fund. In view of this, we are working to assess whether shareholders have suffered detriment and, if so, to what extent any of the parties involved should be responsible for compensating shareholders for any such detriment. This is a complex exercise, and involves looking at the role of a number of different parties, as well as considering to what extent any fall in value is simply due to market performance. We anticipate being in a position to report on the results of this review by the end of March 2010, along with details of any proposals for addressing any investor detriment.”

Maguire has also questioned the FSA’s role in the Arch-cru funds, highlighting the fact that they authorised the funds, Capita and Arch.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. (Maguire says for 0.1 per cent of each original investment)

    Another nice littel earner!!!

  2. I think that you will find that it is 0.2%, 0.1% for the client and 0.1% for the adviser.

  3. I suppose maguire will be putting the income raised back into the fund to repay the £3.2m he borrowed from the fund and can’t pay back.
    This man has such a front- I’d jus treat this as a joke

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