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Treasury in talks over fresh Arch Cru payout
by Jun Merrett on Dec 06, 2012 at 07:46
The UK and Guernsey government are to meet to discuss further compensation for investors in the failed Arch Cru funds.
Kevin Stewart, Guernsey's minister of commerce and employment, is to meet economic secretary to the Treasury Sajid Javid today (pictured) in an attempt to get the UK government's support to establish a settlement for investors funded by all parties involved in the funds.
This would include the previous investment 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.
Stewart said he believes a globally negotiated settlement would deliver the most money back to investors.
'I am pleased to have the opportunity to meet the new economic secretary to the Treasury on Thursday, when we will discuss a number of issues of mutual interest,' he said.
'Guernsey's government does support the principle of a global settlement between all of those parties in the Arch Cru funds. That is because this seems to be the most promising way to work towards meeting the most important objective - securing the best possible return for investors.
The All Party Parliamentary Group for Arch Cru, headed by MP Alun Cairns, has been fighting for a settlement and recently said it had the support of both the Financial Services Authority (FSA) and the Guernsey Financial Services Commission for the plan. The cell companies that made up the Arch Cru funds were based in Guernsey and listed on the Channel Islands stock exchange.
Any settlement provided to investors would be in addition to the £54 million payout brokered by the FSA and funded by Capita, BNY Mellon and HSBC. The FSA is also consulting on a further £110 million scheme, to be funded by advisers found to have mis-sold the funds.
New Model Adviser® also understands the Guernsey government is looking to the Treasury to put pressure on a number of the UK-based insurers of the Guernsey companies to pay out.
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