Home > Investments > Alternative Investments
Coull to pay £6k as High Court rejects Arch Cru review
Second application for a judicial review into compensation over the Arch Cru fund failures was dismissed in the High Court this morning (2 February).
IFA firm Coull Money has lost its bid for a judicial review of the FSA’s £54m redress package for CF Arch Cru investors who were invested on 31 May 2011.
Coull Money, backed by campaign group Justice in Financial Services, filed a judicial review claim on 20 September which sought to challenge the basis for the FSA’s compensation package.
Today the IFA was told to pay the FSA’s £6,000 costs of fighting the judicial review application. This, however, was reduced from the regulator’s original request for £18,000, which the judge ruled was disproportionate.
Both the Capita and the Financial Ombudsman Service were present in court but did not put in for their costs to be covered by the IFA.
Coull Money lost because the judge ruled the firm had insufficient reason for calling for a judicial review as it did not have investor backing.
The judge also said that the FSA was within its rights not to consult on the details of the redress package, as long as it consulted with Fos.
Joe Egerton, sole director of Coull and campaigns director of Justice in Financial Services, said he was disappointed but would consider appealing against the decision.
He said: “This is very serious for IFAs as effectively they can be blamed for anything a product provider does wrong.”
