FSA warns PII providers on dodging Arch Cru claims

Attention has turned to the PII cover firms hold following the launch of a consultation on setting up a £110m redress scheme for Arch Cru investors. That scheme, if approved, would see all advisers who sold the funds forced to review their recommendations and, where mis-sales are discovered, compensate the customers affected. The FSA estimates hundreds of firms will have to pay compensation and that several will go out of business. In a ‘Dear CEO' letter sent to PII providers last week, the regulator addressed concerns it has received from advisers about the possibility of Arch Cru...