Law firm Pannone is offering Arch Cru investors free legal advice to help them recover their losses.
Professional negligence experts will be offering free pro-bono advice to all investors left out of pocket following the collapse of the controversial funds.
Julia Norris, senior associate at Pannone, told FTAdviser that the aim of the clinic is to help those investors that do not know who to go to for help in recovering their losses.
She flagged up that all investors should by now have received individual offer letters from Capita setting out what sum of compensation is currently being offered to them. Pannone claimed the compensation is currently a little over 12 per cent of the original sum invested, excluding the distribution of assets.
Ms Norris highlighted that as the assets of Arch Cru are sold, distributions will continue to be made to investors. Some distributions have already been made. However, the final total value to be recovered from the sale of assets remains uncertain.
She believes that Pannone will especially be able to help investors who invested over £150,000 in Arch Cru. For those investors, it may be possible to recover their money through a professional negligence claim against their financial advisor, according to Pannone. The company is offering investors the opportunity to make a claim on a ‘no win no fee’ basis.
The Financial Ombudsman Scheme will consider complaints against advisors and can award up to a maximum of £100,000, raising to £150,000 from 1 January 2012, to be paid by the advisor or it’s insurers.
The Financial Service Compensation Scheme can help where an advisor is no longer trading or is insolvent. Investors may be eligible for compensation is up to £85,000.
Ms Norris told FTAdviser: “We want to ensure that people are making the right decision. Essentially we are operating on a ‘no win no fee’ basis. We have gone to the management board and we have put to them the plight of Arch Cru. We have got a multi-million pound budget that will allow us to fund these claims in a no win no fee basis. We have the capacity and we believe in trying this, to step outside the box and do it.
“We are offering all investors free advice to make sure they get the maximum compensation available to them. This is the very least they deserve in this latest investment scandal.”