Early day motion 230

CAPITA AND ARCH CRU

• Session: 2013-14
• Date tabled: 12.06.2013
• Primary sponsor: Galloway, George
• Sponsors:
  • Begg, Anne
  • Durkan, Mark
  • Long, Naomi
  • Ritchie, Margaret
  • Sanders, Adrian

That this House condemns the failure of Capita Financial Managers Limited (CFML) and the Financial Conduct Authority (FCA) to compensate fully the 20,000 innocent people affected by the suspension of the UK authorised and regulated Arch Cru investment funds; notes that investors, many of whom put in their life savings, were informed these were low risk funds; holds Capita 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 £20 billion, managed by CFML; demands that the FCA act on its own handbook rules and enforce the remedies set out therein to oblige Capita to compensate investors; and calls on 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.