The Financial Services Authority (FSA) has written to Treasury Select Committee chairman Andrew Tyrie over the Arch Cru funds scandal, outlining the reasons behind its censure of authorised corporate director Capita and plans for a redress scheme funded by advisers.
FSA director of supervision Clive Adamson (pictured) said that the censure of Capita marked the end of its action against the group, but that it could not comment on any further disciplinary action related to the funds.
He added that the FSA had been co-operating with the Guernsey Financial Services Commission as part of its Arch Cru work. 'While we have no legal or other power over the Commission, we have been liaising with them with regard to the Guernsey-based firms involved in the funds,' he said.
Adamson also outlined the FSA's plans for a £110 million redress scheme funded by IFAs found to have mis-sold the funds. He added that while the regulator was consulting on the measures, investors were still able to submit complaints about the advice they received to the Financial Ombudsman Service.