The FSA could face legal action for breach of its own rules unless it lifts restrictions on Arch cru investors claims at the Financial Ombudsman Service and launches a public consultation into the amount of redress they should receive.
The regulator has exercised its powers to bind the FOS so it must consider Arch cru complaints only on the basis of what an investor's entitlement would be under the £54m payment scheme the FSA brokered with Capita, HSBC and BNY Mellon on investors' behalf. Investors argue this amounts to less than 50% of their capital, including any further distributions from the fund which are not guaranteed. The FSA claimed the figure is closer to 70%. Acceptance of an offer of payment from the scheme will be in "full and final settlement" of any claims against the three firms, under the deal. H...
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