Capita writes to Arch cru clients over redress blunder

clock

Capita's administration arm has written to a number of Arch cru investors asking them to return money from the redress scheme, after the payouts breached tax rules.

Capita SIP Services has written to SIPP clients who invested in the Arch cru funds via Scottish Equitable to inform them it paid them their redress money in such a way as to expose them to a 40% higher rate tax charge, after breaching pension scheme rules. Capita has asked the clients to send back the payment - derived from the £54m compensation scheme set up by the Financial Conduct Authority and financed by Capita Financial Managers Limited, BNY Mellon Trust & Depositary, and HSBC - or else pay the tax charge. It said in a letter sent to clients: "When we originally wrote to you we ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
M&G launches full PruFund range on Wealth platform

M&G launches full PruFund range on Wealth platform

‘Greater flexibility and wider choice’

Valeria Martinez
clock 22 May 2023 • 1 min read
Trustpilot