A lawyer representing around 2,700 investors in the suspended Arch cru funds said today's letter from Capita detailing possible offers they could receive only created "more confusion not clarity".
Regulatory Legal's Michael Cotter said he had hoped the letter to investors would reveal more exact details of their payouts from the £54m Payment Scheme.
However, investors in the suspended Arch cru fund range will have to wait possibly until the end of October 2011 to receive a personalised offer letter.
Cotter said: "The offer on the table does not give clients what they want which is to know how much they will receive.
"It is important to note this approximate figure given of 70% is not what they originally invested but a percentage of the NAV of the shares based on prices in March 2009. I would have like to have seen the offer made in one go as this just adds confusion and not clarity for investors but calculations are still being done.
"Investors will also be concerned about the way this offer is phrased which is as if the FSA and FOS are agreed this is what is available and there is nothing investors can do about it. We will wait until people come back to us before deciding what action to take."
Regulatory Legal had previously said it may challenge FOS in the courts to justify why it believes the Payment Scheme is fair for investors. Around 98% of the firm's Arch cru clients had previously indicated they would not accept an offer similar to the one outlined today.
Cotter also said Capita's recommendation for investors to take some kind of advice before accepting the offer was wise as the calculations included in the letter were complex and it could be unclear to them if the deal offered was a good one.
The personalised offer letter will include an application pack which will set out investors' offer for each share class/sub fund in which they are invested.
If investors wish to accept the offer, they will have to fill in an application for every share class/sub fund with a deadline date of 31 December 2012.
They will receive their share of the Payment Scheme (backed by contributing parties Capita, BNYM TD and HSBC) within six weeks of receipt of their correctly completed application.
As expected, today's letter states the sum of the offer made under the Payment Scheme, as well as interim capital distributions in respect of shares to 31 May 2011 and the remaining value of the shares based on their NAV as at 31 May 2011 amounts to on average 70% of the NAV of shares based on their last published prices prior to the suspension of the Ach cru funds on 13 March 2009.
However, the remaining value of the shares based on the NAV as at 31 May 2011 will only be released through the orderly realisation of CF Arch cru assets. Investors therefore have no guarantee what this value will be or when it will be returned.
Any payments made under the scheme will be made without any admission of liability by the contributing parties.
Complaints to FOS about offers under the Scheme may be made within six months of the date on which the application pack is sent out. Investors were also told there would be no ‘double recovery' and they will have to disclose previous compensation arrangements.
However, the FSA has exercised its powers to bind the FOS to the Payment Scheme.
This means FOS cannot consider any complaints against any of the contributing parties regarding investments in the CF Arch cru funds referred from 31 August 2011 to when the personalised packs are issued. FOS had already frozen taking complaints about Arch cru while it awaited details of the Payment Scheme.
The FOS is also required to consider complaints which are referred to it after this time on the basis of investors' proper entitlement under the Payment Scheme as the FSA believes the Scheme offers an appropriate outcome for consumers.
Capita is obtaining guidance from HMRC on the tax consequences for investors of receiving payments under the Payment Scheme.
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