Published: 17:09 EST, 6 April 2013 | Updated: 17:09 EST, 6 April 2013>
New campaign: Gill Cardy
A new campaign is aiming to win fair compensation for those who lost money in failed investment funds group Arch Cru.
It is being spearheaded by Gill Cardy of adviser lobby group IFA Centre and aims to help those excluded from claiming under the £110 million compensation scheme launched by the Financial Services Authority last week.
Investors who may gain from Cardy’s campaign include those whose personal financial advisers have gone out of business since recommending Arch Cru.
Direct investors could also benefit. Some put six-figure sums into Arch Cru in the mistaken belief that the funds were low risk, but the opposite was true and their money was actually being sunk into assets such as Greek shipping and private equity.
The £110 million scheme is being bankrolled by 600 financial advisers who recommended Arch Cru funds as ‘low-risk’ investments. The advisers will be writing to Arch Cru clients to invite them to seek redress.
A separate scheme is being financed by the companies that were meant to safeguard investors’ money in Arch Cru before the funds were suspended in March 2009.
BNY Mellon, Capita and HSBC have at the regulator’s request already agreed to pay £54 million in compensation, but Cardy believes this is inadequate.
She has asked London law firm Harcus Sinclair to investigate whether a successful legal claim can be made against those companies. Damon Parker, a partner at Harcus Sinclair, says the failings of Capita, as steward of the Arch Cru funds, ‘lie at the root of investor losses’. He says the claim for redress is ‘compelling’.
Those who have already accepted their slice of the £54 million of compensation cannot join Cardy’s claim.
Visit archcruclaims.org for further information.
Source : http://www.thisismoney.co.uk/money/news/article-2304964/Hope-Arch-Cru-investors-risked-missing-out.html