Prime Minister David Cameron says he will look “very carefully” at opening an inquiry into the collapse of Arch cru.
He was responding to a question from Tom Greatrex, Labour MP, at Prime Minister’s Questions who said the collapse has hit 20,000 investors around the country.
Cameron said: “I have had contacts from my constituency who have lost money because of this fund who are very concerned about what is happening. I am following the fact there has been a Westminster Hall debate on this and the minister set out the position in terms of the responsibility of the FSA. But I will look very carefully at what he says and see if we can do more.”
Greatrex said: “There are up to 20,000 individuals in UK who have lost considerable sums of money often their pension funds through the collapse of the Arch cru investment funds. That was a fund advertised and marketed as being cautious that turned out to be anything but. Will the Prime Minister now heed the calls from all sides of the house for the Government to use the powers open to the to institute an immediate inquiry?”
Greatrex is co-chair of a new all-party parliamentary group on Arch cru which is due to meet with FSA representatives this afternoon to discuss the compensation package offered to investors.
In June 2011 the FSA, BNY Mellon Trust & Depository Ltd, Capita Financial Managers and HSBC Bank agreed a £54m compensation fund for eligible investors in the fund.
Alongside distributions already made and remaining assets, investors should get back 70% of their investment when the range was suspended in March 2009.
Investors who feel they were missold the fund can pursue further claims against their IFA. Yesterday, the Financial Ombudsman Service provisionally upheld a complaint against an IFA who recommended Arch cru products to clients.
The FSA’s compensation package, agreed between the regulator, BNY Mellon Trust & Depositary Ltd, Capita Finance Managers and HSBC Bank in June, states anyone taking compensation must accept it as a full and final settlement against the firms.