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MP slams the FSA’s part in Arch cru debacle

A Conservative MP has attacked the FSA’s approval of CF Arch cru funds and labelled the investor compensation package as “wholly inadequate”.

In June, the FSA, Capita Financial Managers, BNY Mellon & Depository and HSBC Bank agreed a £54m compensation package for Arch cru investors.

The deal is designed to give up to 20,000 investors an average of 70 per cent of the net asset value of the CF Arch cru fund range when it was suspended on March 13, 2009.

The regulator says if investors accept the payment, it will be a final settlement of any claims against the three companies.

Earlier this month, Conservative MP for the Vale of Glamorgan Alun Cairns called for a Parliamentary debate on the adequacy of the compensation package. Leader of the House of Commons, Conservative MP Sir George Young, rejected the call, saying the details of the package are a matter for the regulator.

This week, Cairns hoped he had secured a backbench business debate on the issue, his debate was on the list of those expected to be had yesterday, but he was not selected to speak.

Speaking to Money Marketing he says: “I want to know how a fund like this passed the FSA’s initial assessment. The compensation package is wholly inadequate, both in terms of the size and the conditions attached to it, and for the FSA to be advocating it is at best dubious. The purpose of requesting these debates is to put down a marker for the FSA and the administrators that this will not go away. I will carry on pushing after the summer recess.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. First highly suspicious Funds get FSA Approval–then the ACD (Capita ) Administer those Funds but seemingly did not know how they were being Invested nor what the true NAV’s were—several eminent Financial persons queried with the FSA what was going on re CF Arch Cru Funds in 2008–then CFArch Cru launch a new “Finance ” Fund in Nov 2008 which attracts Millions of new money —then in March 2009 Capita suspend this and related Funds —then Investors find out that it seems ALL the CF Arch Cru Fund NAV’s (on the basis of which people invested ) were OVERSTATED .
    Then after over two years after MP’s raised questions ,the FSA and Capita get together to offer failed Investors a ludicrous/highly conditional compensation “deal ”
    Then “someone ” starts (professionally /expensively )removing all historic Financial data on these Funds from the Internet —then a Parliamentary Debate on the subject gets removed .
    So nothing at all suspicious then ????!!!

  2. Julian Stevens 21st July 2011 at 5:57 am

    All of which will be ignored by the FSA.

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