Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a604291
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.
News sponsored by:
Today's top headlines
More about this article:
More from us
- Cru in the courts: is the FSA beyond challenge?
- Fresh court clash over Arch Cru as £160m claim launched
- Aifa urges advisers to lobby against Cru redress scheme
- FSA unveils £100m compensation for Arch Cru victims
- Arch boss hit with £20m claim in Cru fallout
- Arch hit with £150m legal claim over Cru funds
- FSA kicks off Arch Cru advice investigation
- FSCS set to rule on 750 Arch Cru claims against IFAs
- Hoban: FSA Arch Cru payout was fair, challenge your IFA instead