Capita CF Arch Cru Investment Portfolio

elliea_2

Hi Everyone,
I am new to the forum so please bear with me.
This post is on the behalf of my mother who invested in the Arch Cru plan. She along with many others has been left in a very difficult position not knowing whether she will ever see her invested money again! And I was wondering if anyone has any advice on further steps that could be taken to get some or all of the money back?

The money is very much needed and is really playing on her mind not knowing what the future will hold. I would be really grateful for any advice you can offer.

Kindest Regards
Elliea

dunstonh

The expected outcome is for a loss of around 42%.

If she feels the investment was not consistent with its risk profile (its classed as medium/high to high risk due to high amounts of private equity and undisclosed assets) then she should complain that it was mis-sold. The FOS are treating it as a specialist investment and not a cautious investment.

elliea_2

WOW, I wasn't expecting that

Well her IFA advised her to invest almost everything she had. I don't quite know how she will cope without the money and I am not in a position to support her financially either.

Are there any steps we should take from here?

dunstonh

Are there any steps we should take from here?

Make a formal complaint to the IFA that the recommendation was not consistent with her risk profile.

That isnt hindsight talking. I am on record on this board of saying before it failed that IFAs shouldnt be recommending it due to various issues. Arch Cru marketed it as very low risk. However, anyone who actually analysed it would have seen it was not. Luckily, only a small number of IFAs failed to do their due diligence and used it . Unfortunately, your mother was one of them.

If the IFA rejects the complaint then take it to the financial ombudsman. I have been following complaints on Cru going through the FOS and whilst the few that used it are putting up a fight, the FOS so far has been finding in favour of the investors (where the person invested heavy into it or it was positioned as cautious).

elliea_2

Thank you so much for your advice.

I will definitely look into making a complaint for my mother.

mraone

Elliea,

My parents are in a similar situation. I recommend you go to archcru.ning.com This is co-ordinating activity from a firm of solicitors Regulatory Legal - (just google them). They are making a FOS claim on behalf of a large number of people who have also invested in Arch Cru - their site currently has 1254 members.

dunstonh

mraone wrote: »

Elliea,

My parents are in a similar situation. I recommend you go to archcru.ning.com This is co-ordinating activity from a firm of solicitors Regulatory Legal - (just google them). They are making a FOS claim on behalf of a large number of people who have also invested in Arch Cru - their site currently has 1254 members.

Be wary of regulatory legal though. They are burning both ends of the candle. They are also representing a number of the directly authorised firms that recommended this fund and giving them the advice on how to reject complaints.

jamesd

Three payments have already been made to investors who held this fund. There are regular updates from Capita. There's also a scheme available to obtain money more quickly in cases of demonstrable financial hardship, details from the Capita web site.

Advising using this for all of her money was not a responsible thing for an IFA to be doing.

Jake'sGran

elliea wrote: »

WOW, I wasn't expecting that

Well her IFA advised her to invest almost everything she had. I don't quite know how she will cope without the money and I am not in a position to support her financially either.

Are there any steps we should take from here?

Did her IFA lead her to believe it was a sure thing, bound to increase in value? I was surprised to read that he advised her to invest "almost everything she had" and, if correct, it suggests he/she was after the most commission possible. I have never heard of the company involved and do hope that if this investment was mis-sold she will receive recompense.

joyfull

I started this thread some time back which might be of interest. Hope the link works?


https://forums.moneysavingexpert.com/discussion/2449851


Our ex IFA saw this thread and identified me as the author of it and took offence (!!!!) I'm therefore wary about posting about where we're at with our 'fight'. Things, however, are looking optimistic (ish).

greenface

dunstonh wrote: »

Be wary of regulatory legal though. They are burning both ends of the candle. They are also representing a number of the directly authorised firms that recommended this fund and giving them the advice on how to reject complaints.

can they do this ? there has to be a conflict .If not there is potential conflict here. Law to themselves