Capita takes £30 million hit from Arch Cru

Amazing they are allowed to conduct their own review of their own failings and determine if they are responsible whilst making sure the Shareholders are utmost in its considerations and the FSA stands by and allows it. How complicit and convenient. Where is the steel rod of authority when it is needed against the big boys.

Authorised Corporate Director? The question begs what were they authorising & directing, One thinks that they did not know?

Bit of a misquote isn't it?

Didn't Capita actually say:

"In the light of the experience gained from the Arch cru situation, we have undertaken a strategic review of CFM and decided that the balance between risk and reward in some of the ACD business does not serve our shareholders well. Accordingly, we are now in active discussions to dispose of part of this business."

What exactly have Capita spent £10 million on I wonder?

What do they expect to pay a further £20 milllion on?

As an ACD surely your responsibilites are to the unit holders of the fund and NOT the shareholders of any parent company.

If Capita went to sleep on the job,were they thinking of investors then?

Further, I wonder whoi their bed fellow(s) were and who snored the loudest so the other couldn;t here what was going on?

How rich!

Given that the NAV of the Fund fell by c.£140M how on earth can Capita pretend that £20M (by way of Detriment?)would salve the wounds of the INVESTORS in the Arch Cru Funds ?

All along I have been convinced Capita would sacrifice CFM /Arch/Cru Investors in favour of Capita SHAREHOLDERS ---and that this past 12 months they have merely been ducking and diving --this announcement confirms that view .

If the FSA allows Capita to walk away from CFM/Arch/Cru Fund mismanagement and no more than £20M made available to Investors (in total ?)then I really would question whose interests THEY represent .

Or is the £20M just Capita's contribution to the compensation Pot ??---nothing can come from the bankrupt Cru ---so where will the balance come from ?---Arch (?!)---the FSA Compensation Fund ??---or from the Investors back pocket??

The saga continues .

Are investors aware that the new Managers - Spearpoint, have re-set the High Water Mark for the funds with Capitas approval

This means that even if the Investors lost 140M+, the new managers will earn performance fees on the funds!!!!!

This whole issue smells rotten and I feel for the investors with their life savings tied up in these funds

I fail to see why Spearpoint shouldn't benefit if they do a good job

I agree with William Ward and David Ogden, plus any body who wonders what the regulator is supposed to be doing.

When all has been said and done, what is the function of the FSA here?

If it is to protect the consumer then this is a cavernous oversight by the FSA.

The £30 million of which they speak is the amount that they have had to fork out, or may have to apply, to investigate the shambles that started on their watch, NOT to compensate those that have lost out. That is almost laughable.

Risk and Reward? What they are really saying is

> This seemed like money for old rope

> We didn't realise that we had to be dilligent and skillfull

> Now that we realise that Charlatans exist, then we'll do something about it.

> Which means we can't make any money

Sell the lot. Pims any one?

Little wonder that the Tories are calling for their abolition.

It will be a tough sale with litigation starting against them.

hi i invested 30k in this fund on 23rd febuary 2009 was i missled or did no one know that this fund was destined to collapse in the following few days ?