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MPs claim FSA support for Arch Cru settlement

by Jun Merrett on Jul 13, 2012 at 11:02

MPs have claimed that they have the support of the Financial Services Authority (FSA) in their bid to reach a globally negotiated settlement involving all parties in the Arch Cru scandal, including Arch, administrators Capita, and the cells' former directors and administrators, Bordeaux Services.

The all-party parliamentary group has been working on a global settlement which would involve all parties 'with responsibility' in the Arch Cru scandal which would bring together parties both UK and Guernsey-based to arrive at one compensation settlement.

This would involve previous managers Arch Financial Products, the cells’ former administrators Bordeaux Services, the cells’ former directors, the custodians HSBC and BNY Mellon, fund administrators Capita, and auditors Moore Stephens, as well as the FSA and Guernsey regulator.

Alun Cairns, MP for Vale of Glamorgan, and leader the all-party parliamentary group on Arch Cru, said: 'We have met the FSA, who have now accepted that they have a part to play in a negotiated settlement with other interested parties.

The FSA said it had been working on a global meeting with all interested parties and has been in talks with the Guernsey regulator over the Arch Cru funds.

An FSA spokeswoman said: 'We are continuing to pursue a global meeting in relation to the funds. We have been talking to key participants in the Arch Cru structure, and to the Guernsey Financial Services Commission.

'However this is a complex process with no guarantee of a successful outcome for investors, even following such a meeting. There are also ongoing legal actions against several parties and these would have to be taken into account before any negotiated settlement could be reached.'

Cairns (pictured) said the Guernsey-based regulator was also on board.

'Although it was suggested that Guernsey Financial Services Commission were reluctant to play a part, we have met with the new Guernsey Commerce and Employment Minister and have gained assurance that they are happy to support, subject to the conclusions of their internal investigation, which is due to be published in September.'

Cairns also said that some of the insurers of the Guernsey cell companies ‘seem prepared to listen which could denote a shift in attitude.

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14 comments so far. Why not have your say?

'We have met the FSA who have agreed they have a part to play'........oh dear.

Bit like inviting a man-eating tiger into the playground and locking the gates.

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There's nothing like a vague assurance from an FSA official, given in private, to hang ones hat on.

Mustn't knock the guy for trying to improve the lot of the Investors here, but...

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don't believe them Alun, they lie!

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This looks like a small step in the right direction, and pressure was applied to the FSA and Guernsey parties by both the APPG and investors.

I would personally amplify Alun Cairns comment towards the IFA community and AIFA.

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What about MP's getting involved in the Keydata - SLS/Lifemark issue as well?

Who would be the most appropriate MP to contact to get this moving?

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Come on AIFA - show you're not a waste of space!

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JM Keynes, you are clutching at straws there !

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Is anybody still alive at AIFA? wHAT HAVE i BEEN PAYING MY MEMBERSHIP FEES FOR ALL THIESE YEARS???

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How could they give a robust defence ?, they have not spoken to any IFAs about the matter.

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I think all the investors and the whole of the IFA community should be very grateful to the MPs who have worked so hard to get a just settlement in this case.

My MP could not care less - I wrote twice - the second time at length - he just copied me a press statement from a Mr Mark Hoban.

Alun Cairns and your colleagues - THANK YOU

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I think it is fair to say that nobody could have anticipated the risks involved when investing in the CF Arch funds, after all its taken nearly four years for the FSA to work out what went wrong and they have still not published the result of their investigation. If only the FSA had spent more time analysing the funds prior to authorising them for retail distribution.

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Now there's an idea FSA authorised funds, that are fit for purpose as they have been thoroughly checked out prior to authorisation. Now that could provide consumer confidence!

The FSA could be highly regarded by all if they were seen to be doing a fair job for all, but sometimes it feels like sight of the original objectives has been lost.

What do we want? Consumer confidence? A nation of savers? Consumers taking responsibility for their own financial futures? A level playing field?

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We met with Mr Cairns on Monday at Parliment. He is a genuine person who want to help. The Committee are doing their upmost to get a fair outcome for Investors & advisers. What we need to do is get an association body that will speak & represent IFA's as well as IFA's having one voice. Regardless of if they arranged any Arch Cru Funds. The resolution of any outcome will impact on them. So time to stop clever boy attitude in fighting and get together. We all know regardless of what box the funds were put in the reason for failure was regulation & administration. The recent statement from the FSA that fund fact sheets represent enough due diligence as they have been approved should be enough providing that the fact sheets have been read, understood & translated to reflect the clients risk profile. So come on contact your MP's and lets hold the FSA & others to account for a change. Political pressure can change things.

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Gillian Cardy

Jul 17, 2012 at 22:04

@DP'sIFA - I'd be delighted to discuss how to progress representing the voice of the IFA - if I knew who you were!! Anyway - you know who I am, and you know I represent IFAs ... if you care to get in touch so that we can see how we can work together it would be a pleasure to hear from you ... gillian.cardy@ifacentre.org.uk

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