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FSCS opens door to claims against Cru IFAs

FSCS opens door to claims against Cru IFAs

The Financial Services Compensation Scheme (FSCS) has said it believes eligible claims exist against some IFA firms which advised on Arch Cru.

The FSCS said it had found some failed IFAs may be liable for losses suffered by consumers where mis-selling can be shown to have occured.

It said it would update investors in late March with more information on the application process for claims and how it will quantify them.

The Financial Services Authority last June announced a £54 million redress scheme for Arch Cru investors, paid for by Arch Cru authorised corporate director Capita and depositories BNY mellon and HSBC. It estimated the scheme could provide investors with around 70% of their money back, but those who take up the offer are still free to pursue their IFA for the remainder of their investment. 

In October 2011, financial secretary to the Treasury Mark Hoban said the FSA payout was fair and that investors should look to their IFAs to seek the rest of their lost investment.

Margaret Cole, interim manager director of the FSA has also hit out against IFAs who advised on Arch Cru, arguing they needed to accept their share of responsibility.

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