Arch cru

The Prime Minister David Cameron has rejected calls from an MP for an independent inquiry into the Arch Cru investment funds scandal.

Arch Financial Products is being sued for £150m by the board of 18 Guernsey-listed investment vehicles for not exercising a fundamental care of assets and failing to account for "substantial secret profits", according to reports.

The FSA has extended its investigation into advisers who sold Arch Cru funds to include inherited or acquired clients.

The Association of IFAs (AIFA) has pledged to use 2012 to campaign for a more comprehensive regulatory structure for advisory businesses.

A group campaigning for a judicial review into the Arch Cru investment funds scandal has had its initial request rejected by the High Court.

Last year's promised changes to regulation - which have long been going on in the background - gripped financial services publicly.

IFAs who recommended Arch Cru - and now may face demands for compensation - are being advised to contact their professional indemnity (PI) insurer to ask them to contribute to the Capita redress scheme, as a cheaper way to deal with claims.

MP David Davis has pressed the Financial Services Authority for an explanation over why it allowed Capita to offer only limited redress to victims of the Arch Cru investment funds scandal.

Capita Financial Managers has published its most up-to-date figures for the total return - and loss - investors in each of the Arch Cru funds can expect.

The Financial Services Compensation Scheme has revealed it has received 600 claims against IFAs related to Arch Cru advice, but added it has yet to decide if it will pay any investors compensation.