Cru to investigate possible regulatory breaches by Capita and Arch

Cru’s investor committee will investigate whether Capita and Arch have committed any regulatory breaches in the running of the suspended Arch Cru fund range.

A statement issued by Cru Investment Management says that the committee will ‘consider whether there has been any regulatory breach by fund managers Arch or administrators Capita, and to take legal advice, together with representations to the FSA, to seek redress if appropriate'.

Cru has unveiled the members of the eight-strong committee, which includes Steve Danner, managing director of SD Asset Management. Danner, is a major Cru shareholder. Cru directors Jon Maguire and Anna Morgans are also directors of SD Asset Management.

SD Asset Management is also part of the Optima IFA group, which has a distribution agreement with Cru. John Rands, director of Squirrel Financial Management - which is part of Optima - sits on the committee as does Optima Group director Kevan Ward.

Collectively the eight advisers control more than £100 million of the approximately £400 million held in the suspended Arch Cru fund range.

The committee will also consider whether fund pricing has been accurate, and will lobby Capita and Arch over the extension of subscriptions and redemption conditions as well as considering a fund structure that accommodates new subscriptions, redemptions and partial withdrawals.

The committee will appoint a chairman on Monday. Cru managing director Marc Ainscough and non-executive chairman Jon Maguire will attend the committee and Michael Derks from Arch has been invited.

A delegation from the committee will meet with Capita ‘at a later date to be arranged’ according to Cru.

Others involved in the committee are Patrick Barker, chairman of Barker Poland, Chips Bishop, managing director of Gracechurch, Tim Field, director of Lifestyle, John Lloyd, a solicitor for clients invested and a private investor. Paul Scarf, managing director of Accountants Financial Planning is also involved.