The FSA has been in discussions concerning the CF Arch cru Investment Funds and the CF Arch cru Diversified Funds with a view to establishing a package for investors who are invested in the Arch cru Funds.
The FSA and Capita Financial Managers Limited (CFM), BNY Mellon Trust & Depositary (UK) Limited (BNY) and HSBC Bank plc (HSBC) are able to confirm the voluntary establishment of a £54 million package. This will be used to make payments to eligible investors in the Arch cru Funds, and will assist the return of a substantial part of their investment to them.
Investors will, of course, have a choice whether to accept the offer of payment out of the payment scheme, which has been established by the firms. If they accept, it will be in full and final settlement of any claims or any remedies they may consider they would otherwise have against the firms.
The FSA considers that this package is a fair and reasonable outcome, which is in the best interests of investors. It provides certainty for investors and will accelerate the return of value to investors.
When added to the distributions already paid to investors and the value of the remaining assets of the Arch cru Funds, the payment scheme should mean that investors will receive a total sum which represents a significant proportion of their investment. This is currently estimated to be on average about 70% of the published net asset value of the Arch cru Funds as at the suspension of dealings on 13 March 2009.
The FSA is considering the role of other parties in relation to the Arch cru Funds.
Full details of how the payment scheme will work are being finalised. This includes the FSA discussing the payment scheme with the Financial Ombudsman Service (FOS) with a view to the FOS following the rules of the payment scheme when considering any complaints made by investors to the FOS against the firms in relation to the Arch cru Funds. CFM will be administering the payment scheme and will be contacting those investors who are invested in the Arch cru Funds as at 31 May 2011 with further information before the end of August 2011.