The Financial Services Compensation Scheme (FSCS) is investigating whether investors have the right to claim compensation against closed IFAs who advised on the CF Arch cru Investment and Diversified funds.
Last month the Financial Services Authority (FSA) Capita Financial Managers Limited, BNY Mellon Trust & Depositary (UK) Ltd and HSBC Bank PLC agreed a £54m package to make payments to certain investors in the funds.
The FSCS said it has been considering the implications of this development for claims it has received against IFAs.
In particular, it said it has been investigating "the duties and obligations" of advisers at the time they advised their clients to invest in these funds.
"This will enable the FSCS to reach a view on whether the advice might give rise to liabilities to investors", it said.
The Compensation Scheme is also in looking into how it would value the CF Arch Cru funds if it became appropriate to pay invstors compensation.
It said it is working with Spearpoint Ltd, which is winding up the funds, to calculate this.
If payments are made from the £54m package, the FSCS will also need to consider how to take into account these payments when calculating compensation that may be due to an investor.
Asked whether the industry may be forced to stump up for further levies if investors are allowed to claim against closed IFAs, the FSCS said it had already accounted for Arch cru in its £217m annual levy in April.
"The FSCS levy is based on the most likely claims assumptions for the year ahead.
"We take into consideration current claims trends and firms that the FSCS is aware of, " they said.
But they added calculations for the annual levy had not included the FSA-orchestrated £54m package, because the FSCS did not know about it at that time.
The FSCS said it will further update investors in due course.
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress