MP writes to Hoban over Arch Cru inquiry
Karen Bradley, MP for Staffordshire Moorlands, has written a letter to Mark Hoban, financial secretary to the Treasury, to request a formal inquiry into the management of the failed Arch Cru funds under Section 14 of the Financial Services and Markets Act 2000.
In the letter, seen by FTAdviser, Ms Bradley said: "I have now written to Mark Hoban. In this regard, I hope that with the establishment of an inquiry, the serious allegations of fraud and theft that have been made in the relation to the management and governance of CF Arch Cru funds can be properly investigated."
The letter appears contrary to a letter sent by Regulatory Legal Solicitors, also seen by FTAdviser, to almost 3,000 advisers it is representing regarding a potential claim to recoup their full investment, which said in relation to a section 14 FSMA inquiry: "We take the view that an inquiry is unlikely to happen."
Gareth Fatchett, director for Regulatory Legal, told FTAdviser: "The inquiry is a good idea but now is not the time as logically it doesn't make any sense.
"It can't happen now as the offer [from Capita, which is administering the £54m FSA redress fund] is not out there yet and therefore the offer has not been rejected. If the investors accept the offer, then there can't be an inquiry."
The Financial Services Authority, Capita Financial Managers Limited, BNY Mellon Trust & Depositary Limited and HSBC Bank plc announced a £54m package for CF Arch Cru investors who were invested in the CF Arch Cru Investment Fund and the CF Arch Cru Diversified Fund on 31 May 2011.
Further information on this package will be published at the end of this month.