The Financial Conduct Authority (FCA) has written to advisers asking them why they failed to comply to its redress scheme rules in reporting back on the number of eligible Arch Cru claimants they had on their books.
Under the redress scheme advisers had one month, from April 2013, to write to their clients and offer a case review, which, if found they had given bad advice, will put the client back into the financial position they would have been in had they received suitable advice.
The FCA's consumer redress scheme (CRS) has so far seen 3,333 investors opt in - a 48% turn-out of investors contacted by the relevant firms.
The FCA has heard from 443 firms so far, who reported that 7,021 cases were within the scope of the scheme, which became effective from 1 April this year.
However, there are still firms outstanding, despite the 29 July deadline for reporting back to FCA.
A spokesperson for the FCA said: "We have written to other firms, who do not appear to have met the deadline, requiring them to provide the report and explain why they have not complied with the scheme rules."
Since the CRS came into force this April, the Financial Services Compensation Scheme (FSCS) has paid compensations amounting to £7.1m to 363 claimants on a full and final settlement basis.
The FSCS said that investors who had not opted in to the scheme before the deadline could "still complain to the advising firm at a later date, although the adviser would not then be required to consider the complaint under the requirements of the CRS".
The FCA's CRS was drawn up in December 2012 to accompany the £54m payment scheme that was already in place to compensate investors in the Arch Cru funds.
The CF Arch Cru funds were suspended by its authorised corporate director Capita Financial Managers in March 2009.
The FSA has concluded that there was evidence of widespread mis-selling by firms who failed to assess the funds as high risk despite the fact that the funds were typically invested in non-mainstream assets such as private equity, private finance and commodities.
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