Maguire to lead fight for Arch cru compensation

Cru director Jon Maguire has pledged to lead the fight for compensation for investors who bought Arch...

Cru director Jon Maguire has pledged to lead the fight for compensation for investors who bought Arch cru funds at 'inflated' unit prices offered by Capita in its role as ACD.

He has also demanded a full investigation into all parties involved in the suspension of the Arch cru fund range in March.

Capita, working with a number of independent legal and accountancy firms both within the UK and in Guernsey, is currently revaluing all assets held within the Oeics to ascertain the best course of action.

It hopes to have completed the process by the end of the month with a full and detailed report due to be sent to all unit holders shortly afterwards.

Maguire says he expects the re-evaluation to lead to losses of at least 25% of the total NAV on units, which would mean a loss of around £100m to investors and open the floodgates for compensation claims.

"Once Capita publish the revised NAV for these units all hell will break lose," says Maguire.

"Those who have bought these units at an inflated price will want compensation, and rightly so. I am already putting steps in place to help these investors fight for this. cru will be at the forefront of motivating investors and IFAs."

Maguire says there are serious questions which need to be asked of all parties involved with the funds including depositors (Bank of New York and HSBC), auditors Ernest and Young and ACD Capita.

"The pedigree of the companies involved should have made us and our investors very comfortable but I feel we have been let down and a full review of all parties involved should be conducted," adds Maguire.

Capita says any investors who feel entitled to compensation should consult documentation given to them at the time of sale or contact their financial adviser for further information.