FSA announces £110m redress scheme for Arch cru investors

irms who advised on investments in the CF Arch Cru Investment and Diversified Funds must contact all their clients asking if they want their case reviewed to determine whether they were mis-sold the funds and may be eligible for redress.

The Financial Services Authority (FSA) said if clients who invested in Arch Cru opt for a case review and receive redress, it will put them back into the position they would have been in had they received suitable advice. This is the first time that the FSA has used its statutory consumer redress power to implement a scheme of this type. The FSA has concluded that there was evidence of widespread mis-selling by firms who failed to assess the funds as high risk despite the fact that the funds were typically invested in non-mainstream assets such as private equity, private finance and c...