Arch Cru: pathology of a major compliance disaster

Independent financial advisers who sold the ill-fated Arch Cru funds are bearing the brunt of a catastrophe that a number of players contributed to. Adam Samuel dissects the cancerous parts.

Adam Samuel BA LLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may be contacted at AdamSamuel@aol.com. His book, ‘Complaints and Compensation: a Guide to the Financial Services Market’, is available from his website, www.adamsamuel.com. Adam has a potential financial interest in a claim on the FSCS relating to Arch Cru.

In a joint consultation with HM Treasury, the FSA has set out how the UK will implement amendments to the Financial Conglomerates Directive. The directive applies supplementary prudential supervision to mixed financial groups that carry out both banking/investment and insurance activities of significant size. The rules must be implemented by 10 June and the UK has little scope for discretion, so will mainly copy the directive text into the Handbook.