Arch cru £54m payment scheme deadline extended by a year

FSA Letters 480

The deadline for Arch cru investors to accept a settlement offer under the £54m payment scheme agreed by Capita, BNY Mellon and HSBC has been pushed back a year until 31 December, 2013.

The firms have agreed today to extend the payment scheme deadline from its previous deadline of 31 December, 2012.

The FSA agreed the payment scheme between Capita, which acted as the authorised corporate director of the Arch cru fund range, and depositaries BNY Mellon and HSBC in July 2011. The FSA estimated at the time the compensation package would return investors an average of 70 per cent of the value of CF Arch cru funds as at March 2009 when the fund range was suspended, alongside distributions already made and remaining assets.

But as at 30 June this year, the latest valuation data available, Capita estimated investors stand to get an average of 62 per cent of the value of the funds.

Capita wrote to Arch cru investors with details of the payment scheme in August, and has sent out individual payment offers under the scheme. Capita has today written to investors advising them of the extended deadline. It says applications submitted after 31 December, 2013 will only be accepted in “exceptional circumstances”.

The FSA has also proposed a separate £110m consumer redress scheme which will require advisers who recommended Arch cru to review their sales and pay redress where appropriate. A policy statement is expected from the regulator next month if the consumer redress scheme is approved.

A Capita spokeswoman says: “The deadline has been extended to give Arch cru investors more time to decide whether the settlement offer is right for them.”