FSA confirms detail of Arch Cru redress scheme

Jenna Towler
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Firms who advised on investments in the CF Arch Cru Investment and Diversified Funds must contact all their clients asking if they want their case reviewed to determine whether they were mis-sold the funds and may be eligible for redress.

The Financial Services Authority (FSA) said if clients who invested in Arch Cru opt for a case review and receive redress, it will put them back into the position they would have been in had they received suitable advice. The FSA said expected between 15% and 30% of consumers will opt in to the scheme. Based on this assumption it added the redress scheme could deliver £20m to £40m in redress. This is the first time that the FSA has used its statutory consumer redress power to implement a scheme of this type. The FSA has concluded that there was evidence of widespread mis-selling by...

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