The FSA has agreed to clarify the level of compensation that investors in Arch cru funds can expect to receive after MPs attacked the regulator for sending confusing letters to investors.
Under a compensation deal set out by the FSA, Capital Financial Managers, BNY Mellon Trust & Depository and HSBC, investors were told to expect around 70 per cent of the value of their investments when the fund collapsed in March 2009, when set alongside distributions already made and remaining assets.
Last week, 40 MPs and representatives of another 20 MPs met FSA conduct of business unit interim managing director Margaret Cole and head of enforcement and financial crime Georgina Philippou.
MPs told Cole and Philippou that letters received by their constituents were unclear on how much compensation they would receive.
Last week, Capita Financial Managers admitted there “is significant difficulty and uncertainty” in assessing the value of around 75 per cent of the £149m of assets held in Arch cru funds, casting doubt over the feasibility of the compensation package.
Cole insisted that the regulator had got the best deal for investors but agreed to look at the issue and inform MPs of any findings.
The FSA also agreed to consider calling a meeting with all relevant parties to discuss the compensation deal, including an IFA representative body.
All-party Parliamentary group on Arch cru co-chair Tom Greatrex says: “A number of important issues were raised and some answers were given but there are still unresolved issues the FSA is looking at.”