Capita spent £21.7m handling the Arch Cru and Connaught cases over 2015, the company’s results showed.
The FTSE 100 outsourcing firm has acted as authorised corporate director of both the Connaught and Arch Cru funds.
Beyond the money it has already spent in 2015 Capita has set aside another £17.2m for further legal and professional fees in the Arch Cru case.
Capita’s results stated: “The parties to the CF Arch Cru Funds group litigation have entered into a full and final settlement of the proceedings on confidential terms. It is expected this matter will be completed by the close of 2016.”
In respect of Connaught, Capital said no conclusion has been reached on whether the FCA’s withdrawal from negotiations with the funds liquidator and launch a review means any wrongdoing has occurred and whether any enforcement action will be taken.
The company said: “While there can be no certainty that a liability will not arise in respect of this matter, the group is unable to determine what the outcome of the FCA review might be and as such no provision for a potential outflow of funds has been made.
“Due to the requirement to await the outcome of the formal review commenced by the FCA, this matter is now likely to come to a conclusion later in 2016.”
In March 2015 the FCA said it decided to investigate the activities of Capita and Blue Gate in connection with their roles as operators of the Connaught Income Series One fund.
It also announced it had withdrawn from negotiations aimed at securing an agreement to address the losses for investors in the fund.
Capita Financial Managers was operator until September 2009 when it was replaced by another company.
The fund went into liquidation in 2012 and its liquidator has bought a claim against both former operators.
Meanwhile the CF Arch Cru funds represent two Oeics, both of which are umbrella companies for six sub-funds.
In March 2009 the FSA suspended the funds on the grounds of insufficient liquidity to meet redemptions.
At the time of suspension, the net asset value of the Arch Cru funds was approximately £362.7m.
In 2011 the FSA announced a £54m redress package for investors.
