Connaught Funds remain in the spotlight
Published 2 September 2014
The Connaught Funds continue to attract parliamentary and regulatory scrutiny. In July 2014, the Financial Conduct Authority ("FCA") confirmed that it would be seeking redress for investors through "voluntary negotiations". The FCA is focussing on those parties tasked with managing and administering the Connaught Funds. A deadline has been set for October 2014.
This will be welcome news for Connaught investors who had concerns that the FCA may not take action. Whilst it is also encouraging that financial advisers are not (currently) the FCA's primary target, allegations that the Connaught Funds were mis-sold as "low risk" investments sound worryingly familiar.
Given the similarities to "Arch Cru", where a voluntary redress scheme was also agreed with the funds' authorised corporate director and depositaries, it is not possible to rule out a formal consumer redress scheme being ordered (against IFAs) in future. Mis-selling claims may still emerge.