Sunday, 6 May 2012

Arch Cru Compensation - more encouraging news

Very pleased to see significant developments for the thousands of people who have lost money in this terrible scandal. I have several constituents who have lost all, or some, of their life savings.
Full report in todays paper:

I am quoted. My view remains that our job is to try and esure that there is the maximum possible recovery for our constituents. The case bears all the savage hallmarks of Equitable Life, although fortunately it is not quite so bad.

My opinion is that there will be recovery as follows:
- the £54 million negotiated package from Capita and others
- the moneys recovered by the effective administrator of Arch = Mr H Aldous
- the moneys recovered by the litigation brought against former executives [both of these are ongoing processes]
and lately the FSA has got involved in proposing a £110million package of compensation from independent financial advisors.
It is important to note that some advisors are clearly blameless. It all depends upon the individual relationship and advice given. But this package must be welcomed in broad terms, although I would want to see the details before giving a definitive opinion, and would struggle to advise on specifics. The full document from the FSA is described in detail at the end of the Mail's piece today.

One thing is clear: the fight goes on and those who have not put their hand in their pocket will soon have to make some compensation - as the list of negligent bodies in this sorry mess has not been finished.

I wish all the losers in this matter well. They need to hold their nerve, do their best to preserve their health and sanity in a difficult time, and understand that everyone in the House of Commons is right behind them - indeed the All Party Group on Arch Cru is the largest new APG in the new House of Commons - we have gone from 0 to over 85 in no time. It is a particular source of pride that it is all party - I work hand in glove with my labour colleague Tom Greatrex, MP, and representatives from all the other parties.