The re-formed All Party Parliamentary Group for the Connaught Income Fund held its first meeting this week and committed to doing “all it can” to make sure all losses are compensated.
A formal APPG was run to review the Connaught collapse after its liquidation, but was wound down in 2015.
MPs were meeting on an unofficial basis until the most recent general election, Libertatem director general Garry Heath previously told Money Marketing, but activity had stopped.
Several members of the former group lost their seats in the 2017 election. The new group is led by MP Peter Aldous.
Aldous says: “I was keen to re-establish the APPG and build on the success of the previous group. Several Members of Parliament have signed up as members of the group demonstrating that parliament is still watching developments and intends to do all it can to ensure that all losses, both direct and consequential, are compensated.”
Heath says: “The re-forming of the APPG is important and having attended the meeting there is a clear indication that Members of Parliament are still very engaged in this issue. With payments due to be made soon; there may be a suggestion that this draws a line under the issue.”
The Connaught Income Series 1 fund entered liquidation in 2012, with investors facing losses of up to 50 per cent as interest payments were withheld.
The FCA started an investigation of Connaught’s collapse last year. In November, it ordered Capita to repay up to £66m to investors. A third party review will also begin once the FCA has finished its investigations into the operation of the fund outside of Capita’s involvement.