Diversified Portfolios
FSA establishes £54m fund for Arch cru investors
Rob Langston, 21 June 2011
The Financial Services Authority (FSA) has unveiled a £54 million payment scheme for investors in the suspended CF Arch cru range of funds.
Investors will be given the option of accepting an offer from the scheme, which will be regarded as a 'full and final settlement'.
Dealings in the Arch cru range of funds were suspended in March 2009.
Capita Group (CPI.L) subsidiary Capita Financial Managers has contributed to the fund and will administer it to participating investors.
Capita is joined by depositories BNY Mellon Trust & Depositary (UK) and HSBC Bank, who have all voluntarily contributed to the fund.
The fund, distributions already made and remaining assets at 31 March 2011 equate to 70 per cent of the net asset value of funds at suspension, according to Capita.
The FSA said the package represented 'a fair and reasonable outcome' and was in the best interests of Arch cru investors.
Capita revealed no financial penalty will be imposed by the FSA on Capita Financial Managers, with the regulator set to publish a statement of findings over its role.
No further provisions by Capita are thought to be required, with its contribution to the fund covered by provisions in its 2009 accounts.
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