Most advisers rated Arch cru as low or medium risk

The vast majority of advisers who risk-rated the Arch cru funds ranked them as either low, low-to-medium or medium risk investments, FSA figures suggest.

The regulator says it is this data, combined with a review of almost 180 case files across 24 firms, which has convinced it that most advised sales of Arch cru funds were unsuitable. This is because it believes the investments should only have been sold to investors with a high risk appetite. Today, the regulator proposed a £100m compensation scheme to Arch cru investors, which is in addition to a £54m redress package announced last year. If the proposals are agreed, firms that sold the investments will be ordered to review their files and redress customers where necessary. The ...