Regulation

CONDENSED NEWS

The Financial Services Authority (FSA) has told banks the new regulatory system will push them to weed out potentially harmful products and demand they pay particular attention to treating customers fairly.

A law firm has told Arch Cru investors it is unlikely they will end up receiving the entire £110m redress the Financial Services Authority (FSA) is expecting advisers to pay out.

Less than 2% of Arch Cru investors have so far taken a complaint about the advice they received to the Financial Ombudsman Service (FOS), it has been revealed.

The Financial Services Authority (FSA) said it will be on the look-out for firms opting to close down their businesses to avoid paying into a redress scheme for Arch Cru investors.

A fraudster has been jailed for four and a half years for laundering funds in a £27.5m boiler room scheme.

ARCH CRU

Advisers may be faced with an extra £33m in Financial Services Compensation Scheme (FSCS) levies as a result of firm failures caused by a proposed £100m FSA Arch Cru redress scheme.

The vast majority of advisers who risk-rated the Arch Cru funds ranked them as either low, low-to-medium or medium risk investments, FSA figures suggest.

The Financial Services Authority (FSA) has launched a three-month consultation on establishing a £100m consumer redress scheme for Arch Cru investors, saying it already has evidence of "widespread mis-selling".