Arch Cru investors offered just '10%-15%' of capital

The redress deal struck by the FSA, Capita, HSBC and BNY Mellon will return Arch Cru investors just 10%-15% of their original capital, according to lawyers who have seen the offers.

Capita Financial Managers last week sent a letter to investors who lost money in the Arch Cru fund range to set out their individual entitlements under a £54m "redress determination" scheme, announced on 21 June. The FSA had said the deal should return approximately 70% of investors' capital, on the basis of an upfront sum from the three companies and the assumption there will be further cash distributions from the range as it is wound down. But investors who received their offer at the weekend said the Capita offer represents between 10%-15% of their initial investment in cash terms,...