MPs looking into the Arch Cru collapse have called for a "global meeting" of the parties involved after accepting there is now "no guarantee" of investors getting more than 70% of their assets back.
The All Party Parliamentary Group (APPG) on Arch Cru met on Wednesday and heard from Hugh Aldous, chairman of the boards of the 18 sub-funds that the Arch Cru fund range was invested in.
In a statement following the meeting, chairmen Alun Cairns MP and Tom Greatrex MP, and secretary Guy Opperman MP, said there was now "no guarantee that 70% of asset recovery can be improved on", referring to the offer on the table put together by the FSA.
A spokeman for the APPG added that it had "discovered that £225m from the £460m investment pot has been lost through poor and negligent investment''.
Explaining how 75% of the Arch Cru investment pot reflects funds from the UK OEICs, with the rest coming from other investors in the UK and overseas, the APPG called for "global meeting of all the parties involved" to ensure that investors recover as much of their money as is possible.
"The FSA and the Guernsey regulator should respond to the calls from increasing numbers of MPs to convene a global meeting to pursue a better settlement for their constituents," the statement added.
"The alternative is to see them exposed to lengthy legal battles with little guarantee."
The APPG has also confirmed it will meet with Lyndon Trott, the chief minister of Guernsey, on 13 March.
'Life catches up with us in the end'
‘Personalised Predictive Analysis’ tool
Summer series continues
Both start in August