FSA failed to act on concerns over Arch cru funds

Investment Week understands at least three major asset management companies raised concerns with the...

Investment Week understands at least three major asset management companies raised concerns with the FSA about the Arch cru funds last year, but the regulator failed to act. The groups - none of which have funds in the same sector as the Arch cru funds - either wrote to or contacted senior members of the FSA. They told the regulator of their concerns that the Arch cru fund literature did not adequately explain the risks involved with investing in highly illiquid assets such as mid-market private equity investments. They were also concerned the Arch cru funds are in the Cautious Manage...