Arch Cru redress scheme could 'irreparably' damage industry

clock •

A proposed £110m redress scheme for Arch Cru investors could "irreparably" damage firms forced to pay for the failures of others through the Financial Services Compensation Scheme (FSCS), the regulator has been warned.

Currently being consulted on the by the Financial Services Authority (FSA), the scheme would require 795 firms to review their Arch Cru business and, where any mis-selling is identified, to pay redress. Although Informed Choice did not sell the products, which it deemed to be too opaque, the firm responded to the consultation because of its fears about the potential impact on the intermediary sector. In an open letter to the FSA, executive director Nick Bamford suggested the estimate of 30% of firms failing as a result of the scheme, potentially landing FSCS levy-payers with a £33m bi...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Treasury Committee flags potential bank tax Budget leak to FCA and Treasury

Treasury Committee flags potential bank tax Budget leak to FCA and Treasury

Dame Meg Hillier pens letter after Bloomberg article went live at 10:45am

Isabel Baxter
clock 29 October 2026 • 3 min read
FCA stands firm on not advocating for legislative change on AI

FCA stands firm on not advocating for legislative change on AI

‘That is the appropriate proportionate response’

Sophia Panayi
clock 22 October 2026 • 2 min read
FCA deputy CEO confirms simplified advice rules will  be published 'soon'

FCA deputy CEO confirms simplified advice rules will be published 'soon'

Sarah Pritchard speaks at the Investment Association Annual Dinner

Sophia Panayi
clock 22 October 2026 • 2 min read