A lottery winner who invested £250,000 in Arch Cru is facing substantial losses after her financial adviser went out of business, only to re-emerge as a new firm months later.
Kingsway Financial Management of Tyne & Wear had been looking after the investor's affairs quite satisfactorily for the previous six years before it invested her in the fund range, the Daily Mail reports. However the advice to invest a quarter of a million pounds in Arch Cru has left the investor with heavy losses after the fund range was suspended in 2009. Kingsway went out of business in 2010, meaning the investor has no access to the Financial Ombudsman's £150,000 compensation scheme, or the FSA's latest £40m redress scheme, which both only apply to active firms. The advisers wh...
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