The Financial Services Authority has asked the High Court to make an "urgent" decision on whether a group of IFAs can judicially review the £54m Arch Cru investors payment scheme.
Six IFAs, who all recommended clients to invest in the funds, are backing a request made in September in the name of IFA Coull Money asking for a judicial review of the FSA-brokered deal which has contributions by Capita, HSBC and BNY Mellon. The group argues the scheme, which caps the three companies' contribution at about 34% of investors' capital and restricts claims at the Financial Ombudsman Scheme against them to the same amount, leaves IFAs exposed to compensation claims for the outstanding amount. No decision to grant the review has yet been reached by the Administrative Court...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes