Arch Cru redress scheme is not justified, says AIFA

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The Association of Independent Financial Advisers (AIFA) has criticised a proposed redress scheme for investors in Arch Cru.

The Financial Services Authority (FSA) is currently consulting on a scheme which it claims could return more than £100m to investors in the funds. If approved, it would see all advisers who sold the investments forced to revisit each case to determine if it was a mis-sale, using an FSA template. They would then have to compensate their clients in a mass-redress project which would likely put dozens of IFAs out of business. But AIFA said the regulator's claim that just 5% of all directly-authorised firms mis-sold the product does not meet the test that mis-selling was widespread acr...

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