SPL Guernsey, the manager of what were the Arch Cru funds, is suing the former auditor of the fund range for £3.7m for breaches of duty in relation to the fund's accounts.
Moore Stephens (Guernsey) began its audit of the fund range in 2008. The Arch Cru funds were suspended in March 2009 due to severe liquidity problems. According to papers filed with the Royal Court of Guernsey, seen by IFAonline, the current fund managers SPL claim the financial statements of the fund's cells as at March 2008 were "materially misstated", in that they overstated the value of certain assets held by certain cells. SPL claim Moore Stephens failed to exercise reasonable care in planning their audit of the fund by not detecting that the financial statements were overstated,...
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