Capita paid £18.5m to settle the claim against it brought by the liquidator of the Connaught Income Series 1 Fund.
According to Capita’s half-year report the company has incurred £1.1m in professional fees in relation to Connaught and Arch Cru so far in 2016.
Earlier this year the company revealed that during 2015 it had spent £21.7m handling the Arch Cru and Connaught cases.
The FTSE 100 outsourcing firm acted as authorised corporate director for both the Connaught and Arch Cru funds.
Capita’s half-year report said: “The parties to the CF Arch Cru Funds 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 relation to Connaught it pointed out that the Financial Conduct Authority has decided to formally review the activities of both operators of the fund.
It said: “At this time no conclusion has been reached on whether any wrongdoing has occurred and whether any enforcement action will be taken.
“Whilst there can be no certainty that a liability will 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, the likely timeline for conclusion of this matter is uncertain.”
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 .
It also announced it had withdrawn from negotiations aimed at securing an agreement to address the losses for investors in the Connaught fund.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.
