Capita suffers £17.9m hit over Arch cru
Capita has taken a £17.9m hit in costs in its 2011 results following the collapse of the Arch cru fund range.
The costs represent Capita’s contribution towards the £54m compensation for Arch cru investors. In June 2011, the Financial Services Authority (FSA) announced that Capita Financial Managers, BNY Mellon Trust & Depository and HSBC Bank had agreed to contribute to a £54m fund, which will be used to make payments to the eligible investors in the CF Arch cru Funds.
Capita was authorised corporate director for the funds, which shut due to liquidity problems in March 2009.
Capita set aside a £30m provision for potential losses arising from the debacle in its 2009 results. Capita directors anticipate no further provision being required.
Capita revealed it made £385.2m of pre-tax profits in 2011, a 6% rise on the £364.2m in 2010.