A group of up to 1,000 investors in failed fund range Arch Cru have joined forces to bring a case against the vehicle's authorised corporate director Capita Financial Managers - and have found a top London law firm, favourable counsel's opinion and third party funding to drive their claim into the High Court on a no-win no fee basis.
The Arch Cru fund range was suspended in March 2009 by the then regulator the Financial Services Authority (FSA) following a warning that it could no longer trade due to pricing and liquidity issues. At that time it was worth a total of £363.6m. Since then some assets have been sold off - at a heavy discount - and the remainder of the fund range has been valued at around just £66m. Capita has been censured by regulator for its role in the downfall of the fund - but was neither fined nor made to compensate investors, on the claim that it had no responsibility for the funds' underlying ...
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