Arch Cru redress scheme is not justified, says AIFA

clock •

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...

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

FCA annual meeting dominated by whistleblower handling criticism

FCA annual meeting dominated by whistleblower handling criticism

After the death of Simon Andriesz

Alex Sebastian
clock 07 October 2026 • 3 min read
FCA secures money back for victims of £1.5m crypto fraud

FCA secures money back for victims of £1.5m crypto fraud

Obtains confiscation orders against Raymondip Bedi and Patrick Mavanga

Sophia Panayi
clock 28 September 2026 • 1 min read
FOS partially upholds complaint against SJP for failing to provide annual reviews

FOS partially upholds complaint against SJP for failing to provide annual reviews

SJP failed to provide five annual reviews for client

Sophia Panayi
clock 23 September 2026 • 3 min read