Financial Services Authority  

Arch Cru investors must respond to FSCS letter for redress

Arch Cru investors must respond to FSCS letter for redress

Investors in the failed Arch Cru funds must let the Financial Services Compensation Scheme know if they want to have their claims reviewed for redress.

Capita Financial Managers was the corporate director of the Arch Cru funds, which were two UK-based open-ended investment companies with a combined net asset value of nearly £363m.

In 2009, the Financial Services Authority – the predecessor of the Financial Conduct Authority – suspended the funds after citing insufficient liquidity to meet redemptions.

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According to an update published today (8 March), the Financial Services Compensation Scheme is letting investors have their claims examined to try to reach a final settlement.

This comes after Capita announced it will not wind up the CF Arch Cru funds until the end of 2018 at the earliest.

By using the lifeboat scheme, customers can receive a payout now, instead of waiting until Capita has wound up the funds.

The FSCS is currently in the process of writing to all affected Arch Cru investors with more details. 

If investors wish to have their claims reassessed under the redress scheme, they must confirm this by responding to the letter. 

Last year, Capita released figures showing how much it had spent handling the Arch Cru cases over 2015.

In February last year, the FSCS said it is considering how to continue with Arch Cru claims.

In 2015, the investment manager of the funds, Arch Financial Products, appointed Baker Tilly to oversee the administration process after a High Court ruled that it was negligent in its management.