Mark Hoban, the financial secretary to the Treasury, has batted away official questions from a fellow MP about the collapse of the Arch cru funds.
Therese Coffey, the Conservative MP for Suffolk Coastal, made a written submission to Chancellor George Osborne to ask what recent discussions he has had with the FSA about the collapse.
The CF Arch cru fund range was suspended in March 2009 due to a lack of liquidity to deal with redemptions. Since then thousands of investors have been unable to access their funds.
Official records show Hoban, who replied this week on Osborne's behalf, side-stepped the question of when Arch cru had last been brought to ministers attention.
"It is not the government's practice to provide details of such meetings," he writes to Coffey, adding Treasury ministers meet members of the FSA regularly "to discuss a wide range of economic and financial issues".
The Suffolk MP, one of the new crop to enter Parliament on 6 May, also asked the Chancellor what recent representations he has received on the collapse of Arch cru funds.
Hoban writes back saying the government has received correspondence regarding Arch Cru funds, but that it is not a government problem.
"This is a matter for the FSA as the independent regulator, and Capita as the Authorised Corporate Director to pursue," he says.
Capita was administrator to the Arch cru funds, the brainchild of controversial financier Jon Maguire. Launched in 2006, the funds promised 'absolute return', and so were supposed never to lose money.
The funds raised just under £400m from small investors, who in December were told their investments were worth between 20% and 40% less than they had previously believed, despite strong growth in global stock markets.
Gareth Fatch, partner at law firm Regulatory Legal which is acting on behalf of hundreds of individual Arch cru investors against Capita, welcomed Coffey's questions.
"It is good politicians are finally taking an interest in a fund in which thousands of investors have lost money."
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