FSA sets out legal backing for Arch cru redress scheme

The Financial Services Authority (FSA) has set out the legal backing it received for its proposed £110m redress scheme for Arch cru investors.

The scheme, which is currently being consulted on, would require all advisory businesses that sold Arch cru investments to contact their customers and, where a mis-sale is identified, compensate them. According to the regulator's estimates, this action could affect almost 800 firms and put many out of business. Advisers have hit out at the proposals, arguing the FSA is unjustifiably assuming they are guilty of mis-selling the funds. In its consultation paper, published in April, the FSA said it had obtained the opinion of a Queen's Counsel and, following requests from a number of i...