Yorkshire Bank has set up a scheme to support 700 investors who lost money in failed property investment vehicle Arck LLP.
In an announcement this week, the FCA said Yorkshire Bank – which provided banking facilities to Arck investors – has agreed to establish a support scheme to return money to investors.
The FCA says Arck lost around £45m of investors’ money. It says there is no suggestion Yorkshire Bank was affiliated with or implicated in the Arck investment schemes.
All qualifying investors who sign up to the support scheme will receive their money back plus 2.5 per cent interest. Yorkshire Bank will then take their place as a creditor and seek to recoup the funds from Arck.
Investors who think they qualify have been given 21 days to apply for the scheme.
Yorkshire Bank chief executive David Thorburn says: “Arck falsely represented our position; we could not have provided the protection it implied. But we believe it is right to support those who invested on the strength of our brand and the protection they believed they were getting.
“The approach we have agreed with the FCA is a positive step; providing an opportunity for a quicker resolution for many of the investors while we seek to recover the funds through other avenues.”
Rowley Turton director Scott Gallacher says: “This sounds like a fantastic result for investors and from Yorkshire Bank’s perspective it shields them from any potential reputational damage that could have resulted from their involvement with this investment.”