Capita Financial Managers (CFM) has paid the Financial Conduct Authority (FCA) £51m in redress as a result of investments in the now defunct Connaught Income fund, Series 1.
The £51m payment was part of up to £66m the FCA ordered CFM to hand over to investors who lost money from the Connaught fund.
The remaining £15m would be transferred to the regulator when administrator Duff & Phelps had calculated the redress payments, according to a note on its website.
Duff & Phelps said the redress calculation process would not completed until May as it did not have all of the necessary data.
The note said: "The calculation process requires the collation of investor transactional data. This process has taken longer than projected due to delays encountered in receiving and processing this data from third parties.
"Certain data remains outstanding at the point of this update however it is currently expected that all final data will be received in the coming weeks and that the calculation will be completed by the beginning of May."
The Connaught fund was an unregulated collective investment scheme (UCIS) which started operating in March 2008, providing short-term bridging finance to commercial operators in the UK property market.
CFM was the operator of the fund until it resigned on 25 September 2009. In 2012, the Connaught fund collapsed, with investors losing as much as £100m.
In July last year, the FCA announced a third-party investigation into the collapse of the fund and CFM, in relation to its conduct as operator of the failed investment. CFM set aside £37m ahead of the investigation.
The regulator found CFM failed to conduct adequate due diligence on the fund, as well as ensuring the replacement operator was fully informed of the issues that had arisen. The FCA said CFM also failed to communicate with investors in a way that was clear, fair and not mis-leading.
Normally, this would have resulted in a penalty on the firm but the FCA acknowledged CFM would not be able to make the £66m to investors if a penalty was also issued.
The FCA appointed Duff & Phelps as agents to carry out the calculation and distribution of monies to investors.
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