A proposed £110m redress scheme for Arch Cru investors could "irreparably" damage firms forced to pay for the failures of others through the Financial Services Compensation Scheme (FSCS), the regulator has been warned.

Victims of a £1m boiler room scam are to be paid back a fraction of their losses after the Financial Services Authority (FSA) secured a court order against the fraudsters behind it.

The government has been criticised for its insistence that the Money Advice Service (MAS) should be responsible for educating consumers about risk.

REGULATION

The Co-operative Group has agreed terms with Lloyds Banking Group to purchase 632 bank branches.

Trade minister Lord Green, the former CEO and chairman of HSBC, has been warned he has "serious questions" to answer over the bank's failure to stop money-laundering by drugs cartels and terrorists.

The proportion of advisers intending to leave the industry ahead of Retail Distribution Review (RDR) implementation appears to be levelling out, a survey has suggested.

The Association of Independent Financial Advisers (AIFA) has set out plans to the Treasury on how regulatory fines could be used to transition the Financial Services Compensation Scheme (FSCS) to a pre-funded system.

The board of the Arch Cru fund cells has signalled its intentions to ramp up legal action against the service providers behind the investments.

The Association of Independent Financial Advisers (AIFA) is urging the Chancellor to reconsider plans to direct regulatory fines to government coffers.