View more on these topics

Trail cash shelved in cru fund valuation quandary

Capita Financial Managers is suspending trail commission to advisers who have clients invested in the £400m CF Arch cru fund range.

On July 29, Capita announced that all charges from investors in the fund range, including annual management charges to the funds’ investment manager and trail commission to IFAs, are being suspended.

The suspension applies to fees accruing from April 1, pending the outcome of Capita’s review of the funds.

On July 6, Capita said Arch cru trail fees were “under active consideration” while the value of the funds was being established.

Capita chief executive officer Chris Addenbrooke says the firm regrets the temporary loss of income to IFAs but the priority has to be investors.

He says: “We do not think that shareholders would consider it justifiable for fees to continue to be paid out of the funds while shareholders are unable to access or realise their investments.

“We recognise that IFAs may be spending more time advising shareholders in relation to the fund at present but we do not consider that this justifies the ongoing payment of renewal commission.

“In addition, renewal commission is calculated by reference to the value of investments in the fund and until our review is complete we cannot ensure that we are accurately calculating that value.”

Last week, Money Marketing revealed that Arch Financial Products had suspended its Guernsey-domiciled fund cells, in which the Arch cru funds are substantially invested, while it determined their correct value.

This prevents the funds from trading their holdings in the shares of the cells on the Channel Islands Stock Exchange but Addenbrooke says the investments were illiquid in nature and contributed to the original suspension of dealings in the UK funds in March 2009. He says the suspension may help to provide some stability while the firm undertakes its review of the funds.


Warning that protection push could be short-term fix

Bright Grey and Scottish Provident propositions director Roger Edwards has warned that the consumer protection insurance engagement campaign could be a short-term fix to a long- term problem.Edwards says the recommendations to be presented to the CPIEC next month by Cicero Consulting will probably inc-lude a media campaign costing each of the 22 members £1m-plus […]

T1ps ups number of funds

T1ps Investment Management, a subsidiary of media and financial services group Rivington Street Holdings, has launched its third fund.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm