Capita recently announced that it will not wind up the CF Arch Cru funds until December 2018 at the earliest. As a result, the UK's Financial Services Compensation Scheme is giving CF Arch Cru investors the chance to have their claims reviewed under the consumer redress scheme with the aim of reaching a final settlement.

The Financial Services Authority (now the Financial Conduct Authority) introduced the consumer redress scheme - a method of calculating compensation for eligible CF Arch Cru related claims from 1 April 2013 onwards. The scheme allows customers to receive a final settlement now, instead of waiting until Capita has wound up the funds.

The FSCS is writing to all affected CF Arch Cru investors with more details. If investors wish to have their claims reassessed under the consumer redress scheme, they must confirm this by responding to the letter.

The CF Arch Cru Funds represent two open-ended investment companies, both of which are umbrella companies for six sub-funds. The sub-funds were substantially invested in a combination of 21 cell companies, incorporated in Guernsey, which were in turn invested in various assets.

Shares in the two OEICs were typically sold to investors through independent financial advisors. Some CF Arch Cru investments were sold as direct investments and others are held through third party providers (e.g. as part of pensions).

The FSCS is considering claims against failed independent financial advisors in relation to advice they may have provided to consumers to invest in the CF Arch Cru funds. It is only able to deal with claims in relation to firms (such as independent financial advisors) that are no longer trading and are not in a position to meet the cost of compensation themselves. A firm has to be declared ‘in default’ by the FSCS before the FSCS is able to pay compensation.