A lawyer representing advisers faced with client complaints over investments placed in the suspended Arch cru funds has hit out at regulators for endorsing the vehicles.
Gareth Fatchett, partner at Regulatory Legal, says the Arch cru range was approved by the FSA, managed by Arch and allocated to the Cautious Managed sector by the IMA. "What were advisers supposed to do?", he asks. Earlier this week, the financial ombudsman (FOS) upheld a complaint against an adviser deemed to have inappropriately placed a ‘low to medium' risk client into the CF Arch cru investment portfolio. It ruled the recommended investment exposed the client's £100,000 capital "to a risk greater than [the client] was prepared for". The FOS pointed out that, normally, a medium ...
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