FSA has censured Capita Financial Managers Limited for failing to monitor Arch cru while it acted as its Authorised Corporate Director (ACD). It found the firm failed in its oversight of Arch Financial Products LLP, which it appointed investment manager of the funds. FSA identified breaches of Principles 2, 3 and parts of the Collective Investment Schemes Sourcebook (COLL). FSA viewed the failings as particularly serious because of the volume of assets under management and the importance of the roles of the ACD. FSA accepted the firm has taken significant steps to address the failings, including a voluntary contribution to a payment scheme for fund investors, setting up a hardship scheme to help investors, funding a series of investigations and reports, and waiving its entitlement to fees. In the circumstances, FSA decided not to impose a fine (which would otherwise have been £4.025 million after the expected 30% early settlement discount). (Source: Final Notice – Capita)