Arch Cru Fund Investors
With the demise and mismanagement of the Capita Arch Cru Fund, I’ve set this post up to allow investors a place where views can be shared, updates can be posted and a general place for those affected to gather together. These funds, marketed as “Cautious Managed” have turned out to be anything but Cautious and certainly not Managed particularly well!
If anyone has information or can link to information which is current and up to date, we’ll make sure it is brought to as many people attention as possible.
admin
The latest news story found so far.
http://www.moneymarketing.co.uk/investments/mispricing-row-after-arch-cru-funds-fall-by-%C2%A3140m/1003597.article
It may be clutching at straws to think that there has simply been a miss valuation of assets. Surely as they have taken so long to do the investigations, they would have gotten things pretty much correct.
admin
It seems that action is being taken by a few already. If anyone who has already started complaints procedures would like to comment, it would be useful to hear how you’ve gotten on .
http://www.citywire.co.uk/adviser/-/news/regulation-training-and-competence/content.aspx?ID=373115&Page=1
admin
We’ll keep them coming!
http://www.trustnet.com/News/Displaystory.aspx?id=50745
Does this mean that there is now a precedent being set?
admin
Arch Cru Boss Blames Managers Of Failed Funds
Chairman of Cru Investment Management, which marketed investment funds that have been suspended for almost a year, makes allegations of improper behaviour against manager Arch
http://www.guardian.co.uk/money/2010/feb/07/arch-cru
Jessy
I have a complaint logged with the Ombudsman (over £200k in Cru funds), however I wondered if it was worth investors making complaints directly to the FSA? I find it hard to believe they will just let investors lose their money on this one.
Not sure many investors know about this site – is anyone out there?
admin
We too have been in touch with the Ombudsman. We raised complaints against both the IFA and Capita. It would be useful to know about who you were complaining. Would it not be the case that the FO would deal with the FSA anyway?
I’ve been speaking to current IFA’s who seem to point to rumblings that some finger pointing is being done regards the IMA who gave the fund such a low risk rating despite it’s now clear flaws. We’ve had a response from Capita stating that they produce not literature at all for the fund and basically got a “not our fault” type of response.
Jessy
I understand that the Ombudsman will initially look at the mis-selling aspect by our IFA (our complaint is about our IFA), i.e. low risk investor invested in what now appears to be a high risk fund.
We appear to be getting standardised templates created by Regulatory Legal from our IFA because, I believe, they want to delay any claims against IFAs in the hope that their case (and sorry I’m not too sure who they are blaming – Capita, Cru or the IMA) is upheld.
In recent press reports, it seems the FSA are creating a body to stop such funds even getting to market. Surely, this is an acknowledgement of the fact that they were wrong to approve the Cru funds and therefore should compensate investors retrospectively in this case.
What worries me is that if the Ombudsman does not believe the fund was missold to us, then where do we go? From what I understand, the Ombudsman will not uphold the complaint because the funds were dodgy from the start. I feel so unheard in it all, that’s why I wonder if it’s worth going direct to the FSA.
I would be more than happy to give you more detail on our claim to the Ombudsman if you email me directly.
Katie
My Dad has lost his full pension through this.
He requested a low/medium risk investment and his advisor suggested that he invest in Arch Cru.
Was Arch Cru seen as a low/medium risk before things went wrong or was his advisor potentially negligent in advising him to invest in Arch Cru?
Any help would be much appreciated – I’ve just started looking into this and don’t know very much.
My Dad is currently dealing with the Ombudsman but doesn’t seem to be getting any where.
Many thanks.
admin
All the literature, advice and even the IMA sector pointed towards it being a low to medium risk investment. The underlying assets though were quite clearly nothing of the sort.
The risk category was wrong which means the IMA are in the wrong. The literature provided by Cru was incorrect so they are in the wrong. IFA’s are expected to look “under the hood” of all investments and do their due diligence so they are in the wrong.
Capita the fund managers are claiming that they had nothing to do with the marketing of the fund and (based on the letters we’ve received back after going the the ombudsman) and will not accept any liability whatsoever.
@ Jessy Yes, I will email you privately this week and put out heads together regarding your claim and ours. That would be a good exercise for sure.
@Katie – Who is your dad complaining about? It it the fund managers or Cru or his advisor (or everyone!)
To anyone else in the same boat, please leave a comment. The more people that group together, the more coherent and weighty the voice.
Another investor
I have a complaint lodged with my IFA and fully expect the next stage to be to go to the Ombudsman. I would be very interested to compare notes with other investors if we can arrange a way to communicate privately.
Another investor
I have a complaint lodged with my IFA and fully expect the next stage to be to go to the Ombudsman. I would be very interested to compare notes with other investors if we can arrange a way to communicate
admin
Clare – I can set up a private group on a platform such as Facebook. It’s just a case whether or not everyone has an account on their. It would allow easy communication between everyone that way. My thoughts would be that most Cru Investors probably don’t use Facebook at all. Your thoughts?
Jessy
Admin – Facebook is good for me.
Another investor
Sounds like a good idea – it would be good to compare notes with others.
Jessy
I’m now waiting to hear from the Ombudsman as my IFA have not given his final response to my complaint despite being ordered to do so by the Ombudsman by 17th March.
Has anyone else got this far please? All incredibly stressful.
Katie
Admin – my Dad is complaining against his advisor to the Ombudsman, apparently he will hear soon.
Although Arch Cru was rated as low/medium, arguably it is not low/medium risk to put the entire pension into this one pot and not diversify?
The only recourse to the Ombudsman is on a point of law and through the courts. Is anyone bringing claims against anyone other than their financial advisor?
I would be interested in a Facebook group.
Jessy
Katie – my email address is jes55@talktalk.net. I would be happy to share notes with you.
There do appear to be a couple of Facebook groups already but no much activity as far as I can see.
Sam
I have lost a considerable amount of money from my investment in an Arch Cru Portfolio that my financial adviser said would be a ‘low risk’ investment and was meant to be in place as a pension fund for me.
I would be grateful for any advice as to who to write to regarding this matter.
admin
Sam
I am putting together a what to do list. Anyone who has had any sort of success in going through the process, if they share it on either this site or as a part of the facebook group we have started, we will share it with everyone.
If anyone feels that they would like to assist in helping keep things up to date, any help would be welcome.
The face book group is called Arch Cru Investors.
I’ve also the start of an email list if anyone would like to go onto that. Facebook for anyone not already on that platform is ideal for the job though. If anyone can’t find it, it is under the category Business – Consumer Groups.
Please keep adding links to any news stories too on this page in the comments.
JohnMidlands
Hi
Lost an important part of my pension in this. Too busy to get into actions at the moment but may do so in due course. Will keep an eye on this blog and feed in anything I find
http://news.bbc.co.uk/1/hi/programmes/moneybox/8501831.stm
John
JohnMidlands
Notices
http://www.capitafinancial.co.uk/reference/arch-20100226.asp
JohnMidlands
Notices
http://www.capitafinancial.co.uk/reference/arch-20091207-2.asp
Mike Wilson
We put £90,000 in ArchCru as our IFA recommended in writing that it was “cautious” and only lent against assets and was over collateralised.
Our IFA didnt even tell us the fund was in trouble, we had to read it in a newspaper and tell him!
Mike Wilson
Hi – I need to draft a decent and effective complaint to our IFA about ArchCru mis-selling and misrepresentation – has anyone on here come up with a good one they could email me the bare bones of?
Or any other useful documentation?
Or maybe someone here would be interested in jointly using a decent solicitor to handle a number of similar complaints?
thanks
Mike
Sam
Hi,
I have now written to the Ombudsman and will let you know the outcome when I receive it and also if there are further steps to take especially if they are applicable to any of you.
george & joan
we started by contacting ombudsman who told us we needed to write a letter of complaint to our ifa. After 12 weeks he had a reply denying responsibility as the fund was classed as cautious by IMA. We have returned official complaint form supplied by ombudsman. We have had no further corespondence in 3 weeks
Jessy
George and Joan,
Have you rung the Ombudsman to check progress? We received a letter about a month ago telling us our complaint will be put befoe the Ombudsman adjudicator but that they are very busy and will write if this has not happened within two months.
It’s going to be a slow process.
Sam
Thanks George and Joan will be checking on Ombudsmans progress in due course.
David Humphreys
I am in a similar situation. In 2008 I was advised by my IFA to switch £27,000 (more than half my life savings) into this fund. The suspension of the fund came as a huge shock and may have condemned me to an impoverished old age (I live on a pension). Since then I have received £1,600 cash and the meagre hope of whatever they can realise from the sale of assets.
I currently have a complaint under consideration by the Ombudsman, which I submitted about two months ago. The whole thing is very worrying. This is an example of gross irresponsibility by somebody and I don’t see why we should carry the can for it.
It seems to be that since there are about 20,000 people in the same boat we should mobilise joint action of some sort. Is there any action I can take that I haven’t already. Letter to my MP perhps?
Jessy
I’d be interested to know if anyone agrees with me, but I feel our best bet is to wait until the Ombudsman starts making decisions before doing anything more. If our claims are rejected then we look at what possible actions we can take.
jane
With pension money in arch cru. Should we still be making payments every month as our ifa suggests
Jessy
Jane, I am not an expert but I would ask your IFA what you are paying into as it obviously won’t be Arch Cru now.
Linda Brown
I have (had) an investment in Cru Arch. I am monitoring your activities whilst trying to decide what to do for the best.
admin
Jane,
Jessy is correct.
You can’t by Cru units any more as they are suspended. You will however still have your pension which still needs to be contributed too. Your IFA will have altered what you are investing into. It will still be a pension but with a different choice of fund. Really, you should understand what it is they have chosen and it should continue to match your risk profile.
Jane, I’d suggest you ask you IFA what he is charging for this switch of investment. Considering the fact that he has not only advised you regarding the initial Cru investment, and undoubtedly kept his heavy commission for doing so, I’d say it’s worth asking for some genuinely free advice for whatever he has changed you over too. Find out what fees they have taken for this most recent advice and suggest ever so politely that it might be fair for this to be reimbursed to you.
To be fair Jane, I’d say you are in the minority of people who actually still here from their IFA since the Cru collapsel. Fair play to him/her for that!
admin
Linda.
Welcome. We do have a facebook group too. Search for the “Arch Cru Investors” group.
Jean
So Capita are undertaking a review to assess whether investors in the Fund have suffered detriment beyond that caused by the extreme economic conditions. What a smoke-screen! With their involvement in the mis-selling of the fund, they will be very relieved if the blame can be laid at the door of economic conditions and no more mention made of their part in the marketing and selling of a fund branded as ‘cautious’.
Stan
Two long standing friends (not able to follow up on their own account) of mine were persuaded to cash in (£62,000) a L&G bond and use the purchase a Merchant Investers policy invested in CF Arch Cru Investment Portfolio. Who is there to claim from? IFA, MI, Capita, IMA?
katie cooksey
Hi there, I am researching for a new series of Rip Off Britain on the BBC and I’m looking into the issue of misleading investments – if any of you would like to get involved in a potential film about the Arch Cru issue, could you email me at katie.cooksey@bbc.co.uk with your phone number and a brief summary of your case, and I’ll give you a call back.
Many thanks
Katie Cooksey
Tony
My sister has/had investment in Arch Cru and isnt quite sure what to do. She hasnt heard anything from her adviser.
Might be useful: http://www.totalinvestor.co.uk/i/activist-dashboard
Deborah
Hi
Glad to find this site. Can anyone tell me if they have paid Regulatory Legal to send a letter to Capita. I received another letter from them urging me to join their protest suggesting that I would not get any compensation if their approach was successful. This seems a bit strange not sure I believe it and I am a bit loath to spend more money for no reason. Also, as they are appointed by the IFAs would it reduce any claim you may have verus your IFA if you join their action group as it seems to me that you are acknowledging this way that Capita is totally responsible
admin
Deborah,
Yes. We are going through this process at this moment in time. It is a bit annoying having to pay but it does seem the best course of action. Capita will run rings around any complaints and make it drag on for many years. It is in their interests to do this as:
a) They have a lot more experience than the average investor and unless your complaint letter is well constructed, they will find ways of avoiding helping you.
b) By dragging it out over a few years, some investors will give up/lose interest or even die!
In our case, the IFA in question has gone out of business anyway so there is little to no chance of recompense by following that action. After attending a meeting with Regulatory Legal, they did make the good point that the actual responsibility for the fund going so wrong does lie with Capita anyway. (Many other organisations are not put in good light too but Capita, as the massive company they are, really are most to blame and also the most likely source of achieving some success. You could still pursue your own action against the IFA’s too of course.
I would suggest that it is worth leaving it to RL. If they don’t get any compensation back, then it is unlikely that you will on your own. It does smart a bit to have to pay for their services but it’s cheaper than using your own solicitor and the fact that they will be dropping a couple of thousand complaints on Capita door all at the same time will hopefully stir someone enough to actually look out for the consumers interests. The Financial Ombudsman are basically a toothless waste of time mostly. The FSA don’t seem to care either – the whole industry is desperately in need of a shake up.
Take the hit and go with them. What’s another couple of hundred quid after all when so much has already been lost. I don’t think it’s good money after bad though – fingers crossed!
David Humphreys
I have a question about this, as I am contemplating throwing in my lot with RL. If RL did succeed in pressurising Capita into making proposals to compensate Arch Cru investors for their losses, would such proposals apply to ALL investors, or only those represented by RL? My own IFA, the St James Partnership, is not represented by RL in this action. if any Capita compensation would apply to all Arch Cru investors there may not be any point in spending £235 on getting RL to represent my interests. Could you let me have your views?
mad malc
I too have a substancial amount invested in CF arch-cru Ivestment Portfolio for my personnel pension,
through Standard Life Savings recommended by my IFA as a low risk fund for my retirement years add infinitum ,on a fixed on a fixed monthly income. I was rightly or wrongly never informed that the monthly amount would alter from its initial amount , of which i was satisfied with, providing it didn`t alter. I only received a letter on saturday 28th aug.10 dated 24 /08 /10 from St.Life informing me that the ARCH Cru investment portfolio had been suspended and no more pension would be paid. No communications from my IFA!!! As u can imagine it`s like getting blood out of a stone trying to get anyone to commit themselves, however i`ve managed to get in touch with the FSA who would not commit themselves but told me that my contract was between myself & my IFA,this was also the oppinion of my bank manager & a solicitor friend of mine, my immediate thoughts are do i start proceedings against my IFA and claim against his Professional Indemnity. Can anyone shed any light on this. mad malc.
Jo Walker
We have a Facebook group ‘Arch Cru Investors 2010′. I am having some technical problems with Facebook currently tho.
Ultramod
Sorry about the recent “down time”. Computer says no!
Back up and running again – hopefully most people didn’t realise.
Just as an update, I recently did some filming with the BBC and I’ve uploaded another post about it here. Arch Cru Update. This thread is getting so long now it might as well prove a good time to start at the top so to speak.
If anyone would like to add a post of their own at all, please let me know.
David Miller
I have just started reading the comments,
My IFA has gone into liquidation and I have applied to the FSA compensation scheme for reimbusement due to misselling of the product and have been advised that the outcome could take 6 months ?
Also I would be pleased to know how David Humphrey April 22nd has recieved £1600.00 compensation
Ian Macleod
My wife and I have submitted a claim to the Ombudsman –basically along the lines of the RL case ie that fundamentally it is Capita as ACD who are ultimately responsible for the missmanagement of our Investment and subsequent losses .As with RL and their Clients we await the FOS determination –which IS taking an incredibly long time to resolve—–
Do you know when the BBC Rip Off Britain programme will be shown ??
yorkie
I complained to the ombudsman – although haven’t got that far yet as it is still with the adjudicator. Adjudicator’s view is that it doesn’t really matter whether it was mismarketed as medium risk as we are young enough (in our forties) to make the money over again!!! What is the point of selling investments in different risk categories if the adjudicator takes the view that it doesn’t matter whether it was mis-sold as a medium risk investment anyway?
I have not accepted his view and will take it higher.
I was also reassured by the IFA that the exposure to private equity was small but it seems to be that the main part of the fund was in private equity and that it was this element of the fund which was overvalued according to a Citywire article today.
yorkie
One more point. Has anyone looked into the Advertising Standards Authority’s view on whether the organisations marketing Arch Cru to investors – i.e the IFA umbrella organisations and the companies managing the funds (eg Skandia) who I guess also supplied marketing information and certainly advertise widely about what they do – whether the adverts actually relate to the service investors have received?
I think that organisations are actually obliged to deliver the services they advertise but this hasn’t happened.
Also – is anyone else still being charged for their Arch Cru investment? I am. Apparently charges can’t be dropped for a ‘live’ investment. How can a suspended fund be live?
These companies are supposedly financial experts so surely they can work out how to refund a few charges!
danny
Please could you let me know what the latest update is re: the class action by RL?
Many thanks
Danny