Comedy of errors at Capita and Arch - so why must IFAs pay?

ARCH CRU

Laura Miller
clock

Today's Financial Services Authority decision notice against Arch Financial Products (AFP), Robin Farrell, AFP's chief executive, and Robert Addison, a senior partner and former compliance officer at AFP, reads like a how to guide of how not to run an investment.

In the FSA's opinion, - and all the other parties are disputing the charges - AFP pursued an investment strategy which resulted in significant liquidity risks for funds that were advertised as "low risk" or "cautious". Further, the FSA believes that AFP and Farrell failed to ensure that the funds aimed to provide a prudent spread of risk. Also, AFP was in a position of trust and needed to demonstrate fair management of conflicts of interest - in the FSA's opinion, AFP failed to do so, not least in the covert share sale that netted Farrell £492,000 personally. Given their roles, man...

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

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read