George Galloway MP has today tabled an Early Day Motion on the failure of the Arch cru funds.
Early Day Motions (EDMs) are formal motions submitted for debate in the House of Commons. While very few are actually debated, EDMs allow MPs to draw attention to an issue or cause of particular concern to them and, of course, their constituents.
The motion reads :
That this House
condemns the failure of Capita Financial Managers Limited and the Financial Conduct Authority to fully compensate the 20,000 or so innocent people affected by the suspension of the UK authorised and regulated Arch cru investment funds;
notes that investors, many of whom invested their life savings, were informed these were low risk funds;
holds CFML responsible for failures in oversight of the funds, the investments of which were hidden behind Guernsey cell companies to give them the aura of eligible holdings;
is gravely concerned that this failure may well impact on investors in some of the other 230 funds, worth around £20bn, managed by CFML;
demands that the FCA act on its own handbook rules and enforces the remedies set out therein on CFML to compensate investors; and
calls on the the Chancellor of the Exchequer and the Financial Secretary to the Treasury to act immediately to ensure that such failures in financial regulation are never repeated.
IFA Centre is calling on all advisers and any affected investors to contact their MPs to invite them to register their support for investors and advisers in their constituencies by signing the motion.
Gillian Cardy, managing director of IFA Centre commented “A number of MPs or their parliamentary assistants attended the House of Commons briefing in May and were concerned about the situation in which many Arch cru investors find themselves. Tabling the EDM is a natural way for Mr Galloway to continue to raise awareness of the unrecovered losses incurred by his constituents as well as thousands of other investors.”
George Galloway MP added “I am not alone in having constituents affected by the failure of the Arch cru funds and the failure of the regulator to ensure that all investors in the funds obtain compensation for their losses, including those left out in the cold by the Financial Conduct Authority’s inadequate redress scheme.”
