Informed Choice chartered financial planner Nick Bamford was a guest on Money Box on BBC Radio 4 on Saturday lunchtime, talking about compensation for investors in the failed Arch cru funds.
Nick was interviewed live by presenter Paul Lewis and spoke of our frustration at having to pay compensation on behalf of the failed IFA firms that sold these high risk funds.
The Financial Services Authority (FSA) is currently consulting on a consumer redress scheme that could see those IFAs that sold Arch cru funds paying over £100m of compensation to investors.
As a firm that never sold any Arch cru funds, it is likely that Informed Choice will face a bill of up to £10,000 to fund compensation paid from the Financial Services Compensation Scheme (FSCS).
Whilst the FSA consumer redress scheme is good news for investors who were missold Arch cru, it represents bad news for firms such as Informed Choice and our clients, who ultimately pay for FSCS funding through advice and product charges.
You can listen to what Nick had to say on the subject on BBC iPlayer here. Scroll forward to 17 minutes and 10 seconds to hear the item.
Photo credit: Flickr/Hytok
