Why the FSA's Arch Cru scheme will have a 90% take-up

MISCALCULATION

Laura Miller
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The Financial Services Authority's (FSA) Arch Cru scheme is likely to have a much higher ‘opt in' rate than the regulator has estimated, putting more strain on advisers and their professional indemnity insurers than some expect.

Firms who advised on investments in the CF Arch Cru Investment and Diversified Funds must contact all their clients asking if they want their case reviewed to determine whether they were mis-sold the funds and may be eligible for redress. The FSA said if clients who invested in Arch Cru opt for a case review and receive redress, it will put them back into the position they would have been in had they received suitable advice. It added it expects between 15% and 30% of consumers to opt in to the scheme and that, based on this assumption, it believes the redress scheme could deliver £20...

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