IFAs who recommended Arch Cru - and now may face demands for compensation - are being advised to contact their professional indemnity (PI) insurer to ask them to contribute to the Capita redress scheme, as a cheaper way to deal with claims.
The Financial Services Authority has begun an investigation into firms which recommended CF Arch Cru funds to retail clients on an advised, discretionary or mixed basis between July 2006 to March 2009. Regulatory Legal, which acts for about 2,700 Arch investors and works with an action group of about 60 IFAs who recommended the fund range, has branded the FSA investigation "pre-determined" to find fault with any advice which did not class the investment as high risk. The law firm is advising IFAs to approach their PII underwriters and invite them to contribute money to the £54m paymen...
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
