Chairman of Arch Cru Guernsey cells to face MPs

The all-party parliamentary group looking into the Arch Cru redress scheme is set to meet tomorrow (22 February) to hear evidence from Hugh Aldous, chairman of SPL Guernsey, on the complex nature of the Arch Cru investments.

The spokesperson for the APPG told FTAdviser that Mr Aldous will be attending the meeting to give a brief overview of the “complex structure” and the efforts to release the remaining assets and the possible timescale.

Mr Aldous’ firm has launched a £150m suit against former fund manager Arch Financial Products, alleging that it invested “huge sums” in investments that “it lacked the necessary experience and skill to competently assess, arrange and implement”, particularly highlighting the funds’ Greek shipping investments.

Mr Farrell has denied the allegations, saying the firm invested heavily in shipping as it was “our best strategy” and that it was simply the financial crisis that caused the industry to drop “off a cliff”.

There are now 78 MPs in the APPG, representing all parties.

A spokesperson for the group said the rise in the number of MPs involved is largely due to “so many having constituents affected by Arch Cru”.

The spokesperson added that since the Westminster Hall debate that took place on 19 October, more members of the public have become aware of this issue and have been writing to their MPs.

On 31 August, the FSA announced a £54m package for CF Arch Cru investors who were invested on 31 May 2011, which is being provided by the authorised corporate director of the funds, Capita Financial Managers, and depositories BNY Mellon and HSBC.

The package has been a bone of contention with advisers and investors alike, with many stating that full redress is needed.

IFA firm Coull Money, backed by campaign group Justice in Financial Services, recently lost its appeal to hold a judicial review on the compensation package.

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.

Law firm Regulatory Legal, representing some 2,800 investors who invested in the Arch Cru funds, has also applied for a judicial review but no decision has been made yet.

Justice in Financial Services has written to MPs ahead of tomorrow’s meeting of the APPG on Arch Cru to bring them up on the latest developments in the case.

Mr Aldous declined to comment on his attendance or what the aim of the meeting was.