Capita forced to quadruple payouts to Connaught investors

It said: “To ensure that investors receive appropriate redress and to bring this matter to a close enabling the smooth disposal of CFM, CFM and Capita have agreed a full and final settlement with the FCA.

“In reaching this settlement, the full cooperation which CFM has given to the FCA during the course of its investigation has been acknowledged.”

In its latest accounts Capita said it set aside £37m to pay any potential FCA penalty as well as associated legal costs.

The company said it has already paid out £18.5m in 2016 as part of a settlement with the liquidator of the Connaught funds.

The FCA has said today’s announcement brings its investigation into CFM to an end, but it has confirmed it is still investigating other aspects of the fund’s operation.

It is not clear whether that will include financial advisers who sold the funds to clients.

Capita was also the authorised corporate director of the failed Arch Cru funds, which collapsed in 2009 losing investors around £250m.

In its accounts Capita revealed it had entered into a “full and final settlement” with the CF Arch Cru Funds, on confidential terms.