MP David Davis has pressed the Financial Services Authority for an explanation over why it allowed Capita to offer only limited redress to victims of the Arch Cru investment funds scandal.
Davis, a leading Tory MP, is concerned the level of compensation was decided not on grounds of fairness, but on Capita's ability to pay, according to the Daily Mail. The Arch Cru funds were suspended in 2009 amid allegations of widespread mispricing and that fund manager Arch had invested in inappropriate assets. As authorised corporate director to the Arch Cru funds, Capita's duty was to safeguard investors' assets and ensure their money was invested according to the rules. Investors argue it failed to carry out those responsibilities effectively. Banking giants HSBC and BNY Mello...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
