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

Quality investing: Holding conviction when markets test investors

Quality investing: Holding conviction when markets test investors

Quality investors have no doubt had their conviction 'severely tested' of late

Scott Spencer
clock 31 March 2026 • 5 min read
Darius McDermott: The five-year laggards - can they revive?

Darius McDermott: The five-year laggards - can they revive?

'It's a complex backdrop for investors'

Darius McDermott
clock 31 March 2026 • 6 min read
Protecting portfolios during heightened inflation risk

Protecting portfolios during heightened inflation risk

'This is a year for careful, defensive positioning'

Fahad Hassan
clock 30 March 2026 • 3 min read