FSA is consulting on setting up a consumer redress scheme to provide redress to consumers who were mis-sold CF Arch cru Investment and Diversified funds. FSA wants the scheme, the first it has planned to set up, to put investors in the position they would have been in if they had received suitable advice. The scheme will be in addition to the payment scheme announced in 2011, which will provide £54 million in compensation to some investors. FSA seeks views particularly on:
- firms being required to contact customers within four weeks of FSA making the relevant rules, to let them know whether they fall within the scope of the scheme;
- providing a calculator to help firms work out each payment; and
- timings for giving notifications to investors on how much redress is due, and within which deadlines they should receive payment.
FSA asks for comment by 31 July. (Source: FSA Consults on Arch cru Redress Scheme)