FSA has made rules setting up the Arch cru consumer redress scheme. Under the rules, advisers must contact clients who invested in CF Arch cru Investment and Diversified Funds, to ask whether they wish their cases to be reviewed to assess whether their adviser mis-sold the investment to them and whether they are eligible for redress. Under the rules:
- advisers will have one month from 1 April 2013 in which to contact their clients and FSA will check their progress. FSA has set the wording for letters firms must send. Investors who want their cases reviewed must complete a short form;
- advisers must let customers who opt in know the outcome of their case by 9 December 2013;
- the amount of redress will be calculated by reference to what would have been a suitable investment for the individual investor; and
- the final amount of redress paid will reflect the current value of the funds and deduct the amount an investor is eligible to claim from the separate £54 million payment scheme.
The payment scheme involving Capita Financial Managers Limited (CFM), BNY Mellon Trust & Depositary (UK) Limited (BNY) and HSBC Bank plc (HSBC) runs until 31 December 2013. Investors can apply separately to this scheme. (Source: PS 12/24 Consumer Redress Scheme in Respect of Unsuitable Advice to Invest in Arch cru Funds)