MPs today accused the Financial Services Authority (FSA) of failing in its duty to regulate Capita's management of the Arch cru fund range and of trying to cover up its failings by colluding with the company to force a £54m payment scheme on investors.
At a parliamentary debate in Westminster this morning, one MP accused the regulator of a "clear conflict of interest" over the £54m payment deal it brokered with Capita, HSBC and BNY Mellon. The FSA has told investors the scheme will return about 70% of their capital, which it said would represent a "good outcome". But investors argued it will return closer to 50% and will not be guaranteed. They said they can not make an informed decision about the offer's merits until the FSA publishes the findings of its review into Capita. However, this is not currently expected until after the cu...
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