Arch Financial Products sued for £150m over failings

Arch Financial Products is being sued for £150m by the board of 18 Guernsey-listed investment vehicles for failing to exercise fundamental care of assets and to account for "substantial secret profits", according to reports.

The board was appointed by Capita, the authorised corporate director of Arch cru's UK funds, to wind up the Channel Islands Stock Exchange-listed cells in which the money was invested. A High Court writ claims Arch ignored conflicts of interest by using money from the cells to buy shares in Arch and cru Investment Management, which marketed the funds in the UK, the Financial Times reports. It adds around £2m was invested in cru, valuing the company at £9m, even though the most recent audited accounts showed net assets of only £8,413. Meanwhile, it also claims Arch made "secret prof...