Uncertainty about professional indemnity insurance (PII) cover and concerns about the impact on consumers are among the main worries of Financial Services Authority (FSA) board members about a proposed £110m redress scheme for Arch Cru investors, it has been revealed.
The scheme, which is under consultation, would see hundreds of firms having to review their sales of Arch Cru products, identify cases of mis-selling and pay compensation where appropriate. However, as the minutes to the April meeting of the FSA board show, there were a number of concerns which meant some members are still reluctant to implement the scheme, which would be set up under section 404 of the Financial Services and Markets Act 2000. With about 30% of the firms affected predicted to go out of business as a result of paying redress, there were concerns that it could end up be...
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