Arch cru: Extra £38m FSCS levy due as payouts begin

The Financial Services Compensation Scheme (FSCS) is to levy life, pensions and investment advisers for an extra £38m, as it begins making part-payments to Arch cru investors with eligible claims against failed IFAs.

The FSCS has outlined its long-awaited approach for compensating investors, but it said it now expects it will pay more compensation than it initially anticipated, resulting in the extra levy. It said it had sought external expert advice on the residual value of the CF Arch cru funds and that it was satisfied with the estimated value, although that remains unstated. But it said that, because of the nature of the underlying assets, there is uncertainty about the amounts investors will eventually get back through the wind-down process of the funds. As a result, it said it would begin...