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.”