Several fund managers have transferred away from Capita Financial Managers as authorised corporate directors (ACD) after the Arch Cru debacle.
Capita announced in February that it would divest itself of ACD clients if it considered there was excessive risk or insufficient rewards after a review which followed the failure of the CF Arch cru funds, where Capita acted as ACD.
Tony Yousefian, the chief investment officer of OPM Fund Management, says he left Capita in March because of a rise in charges and concerns about service.
“We did feel that we were checking their work too much, too often”
Yousefian says: “We did not have too much of a problem if things were running smoothly but we did have a few issues that they had to resolve. We did feel that we were checking their work too much, too often.”
Gerard Quirke, rival ACD provider Phoenix Fund Services’ director, says: “We are getting an awful lot of interest from people who have had their business with Capita and we are delighted to talk to these clients.”
Money Marketing, Fund Strategy’s sister publication, has heard from several other asset managers who have left Capita but are unable to speak publicly owing to concerns they may face legal action from the group. (article continues below)
Capita has allocated £30m to cover costs resulting from the CF Arch Cru debacle, which lost £140m in value between March 13, 2009, when it was suspended, and September 30, 2009, when it was revalued.
A Capita spokesperson says: “We are confident that we provide a high quality ACD and fund admin solution which enables investment managers to focus on fund distribution and investment activities.”