FSA estimate for Arch cru redress 'incredibly optimistic'

A law firm has told Arch cru investors it is unlikely they will end up receiving the entire £110m redress the Financial Services Authority (FSA) is expecting advisers to pay out.

Earlier this week, the regulator set out plans for a redress scheme which, if approved, would see every adviser who sold Arch Cru conduct a past business review and pay compensation to clients identified as having been mis-sold the funds. The regulator believes most advised sales of Arch Cru were faulty and it has provided a template advisers can use to determine whether the advice they gave was compliant. It expects investors could be compensated to the tune of £110m as a result of this process. However, law firm Regulatory Legal said the FSA may have overestimated the professiona...