FSCS delays verdict on IFA liability over Arck

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The Financial Services Compensation Scheme (FSCS) has said it is not able to reach a verdict on the liability of advisers who recommended property investment Arck and who have had a claim against them due to ongoing criminal proceedings against two former Arck partners.

Kathryn Joy Clark and Richard Aston Clay, former partners at Arck, have been charged with fraud and forgery offences by the Serious Fraud Office and Nottinghamshire Police. The trial is due to take place in January 2015. The FSCS said that, due to these ongoing criminal proceedings, it "is not able to reach a view on the liability of the independent financial advisers against which we have received claims at this time". In particular, it said it is unable to confirm whether any losses incurred by investors were caused by the advice they received from their IFA to invest in Arck LLP. ...

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