The Capita Group Plc (CPI), BNY Mellon Trust & Depositary (UK) Ltd. and HSBC Bank Plc agreed to provide 54 million pounds ($87.5 million) to compensate investors in the CF Arch cru funds.
The firms set aside the money at the request of the U.K.’s finance regulator to pay claims by investors who lost money in Arch’s Investment and Diversified Funds. Payments from the fund will be in final settlement of investors’ claims, the Financial Services Authority said in a statement today.
The CF Arch cru funds were suspended in March 2009 when they couldn’t pay all investors who sought redemptions, the FSA said. At the time, Arch’s Investment Fund was valued at 255.5 million pounds and its Diversified Fund at 107.8 million pounds, according to the agency. At the most recent valuation, on March 31 this year, the Investment Fund was valued at 113.1 million pounds and the Diversified Fund at 35.8 million pounds.
Investors, some of whom have already received distributions, will get about 70 percent of the value of their Arch funds holdings at the date of the suspension, Capita said in a separate statement. Capita is the authorized corporate director of the funds, while HSBC and BNY Mellon are the trustees.
The FSA won’t impose a financial penalty on Capita and the company didn’t admit liability, it said in a separate statement. The regulator will later publish its findings regarding Capita’s role in the collapse of the Arch funds.
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