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MPs unite to address Connaught issue

MPs unite to address Connaught issue

A group of MPs has united over the long-running problems caused by the Connaught Income Series 1 fund.

The All-Party Parliamentary Group for the Connaught Income Fund has been re-formed, with Conservative MP Peter Aldous as its chairman.

It existed in both the previous parliaments but its previous chairman, Kirsten Oswald, lost her seat along with several prominent members in last year's general election.

Mr Aldous said: "I was keen to re-establish the APPG and build on the success of the previous group.

"Several members of parliament have signed up as members of the group demonstrating that Parliament is still watching developments and intends to do all it can to ensure that all losses, both direct and consequential are compensated."

In March 2015 the Financial Conduct Authority decided to investigate the activities of Capita and Blue Gate in connection with their roles as operators of the Connaught fund.

Capita Financial Managers was operator until September 2009 when it was replaced by another company.

Last November the FCA announced that Capita Financial Managers would pay up to £66m to investors who had suffered a loss as a result of their investment.

This brought an end to its investigation of Capita, but the regulator has said other aspects of its investigation are ongoing.

In 2016 the FCA said it would conduct a review into the way its predecessor regulated the Connaught Income Series 1 fund after the Complaints Commissioner found the FCA “shifted the focus” away from its regulatory failings onto advisers.

Garry Heath, director general of financial advice trade body Libertatem, said: "The re-forming of the APPG is important and having attended the meeting there is a clear indication that Members of Parliament are still very engaged in this issue.

"With payments due to be made soon; there may be a suggestion that this draws a line under the issue.

"However there are still many unanswered questions and people who have been badly hit by this whole scandal. For those people it is reassuring that MPs are still determined to see justice done."

damian.fantato@ft.com

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