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Hopes for further Arch Cru payout dashed
by Daniel Grote on Jan 02, 2013 at 08:11
The Guernsey government has downplayed hopes for a further compensation payout for Arch Cru investors, suggesting the Financial Services Authority (FSA) is not on board with efforts to forge a settlement between the parties involved in the funds.
Guernsey minister of commerce and employment has said that it would be ‘difficult’ to achieve a settlement unless there was agreement from both the UK and Guernsey, The Times has reported.
Stewart met with economic secretary to the Treasury Sajid Javid last month for talks on a settlement, which would be in addition to the two compensation schemes already announced by the FSA. Investors in the funds are able to reclaim money lost through a £54 million scheme funded by Capita, authorised corporate director of the funds, and depositories BNY Mellon and HSBC, and a further scheme to be funded by advisers found to have mis-sold the funds.
Stewart has supported a settlement encompassing parties that came under Guernsey regulation as well as the UK. The cells in which the Arch Cru funds predominantly invested were based in Guernsey.
According to The Times, no further meetings with the Treasury for talks on a settlement are scheduled, although Stewart is set to meet Tory backbencher Alun Cairns, head of the all party parliamentary group on Cru, who has championed a deal.
Stewart would not confirm to the paper whether the Guernsey Financial Services Commission supported a deal, but added it was ‘undertaking its own regulatory investigations, and these are ongoing’.
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