Judge warns FCA against 'hindsight' in Arch case

The judge overseeing the Tribunal hearing of Arch Financial Products (AFP) directors Robin Farrell and Robert Addison said on Tuesday he had "to be careful not to apply hindsight" when assessing the firm's investment decisions as the FCA outlined its final arguments against them.

Farrell and Addison are appealing a fine and ban meted out by the FCA's predecessor regulator, the Financial Services Authority (FSA), in 2012. It had accused the pair of "reckless" failings in managing conflicts of interest at AFP, which was the investment manager of the failed CF Arch cru fund range. The CF Arch cru Investment and Diversified funds invested in Guernsey-domiciled investments listed on the Channel Islands Stock Exchange, which were also set up and overseen by Arch. But the funds' illiquid investments left investors exposed to the turbulent market conditions in 2008...