[Albert Owen in the Chair] — Arch Cru Compensation Scheme

Part of the debate – in Westminster Hall at 10:01 am on 19th October 2011.

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Photo of Alun Cairns Alun Cairns Conservative, Vale of Glamorgan 10:01 am, 19th October 2011

It is a pleasure to serve under your chairmanship, Mr Owen. I want to congratulate and pay tribute to Tom Greatrex on securing the debate and on the way in which he introduced it. He set an absolutely right tone to try to uncover the scandal and seek justice for many innocent investors.

This debate is the first opportunity to air serious issues that have cost some 20,000 people significant sums in respect of a fund once valued at £400 million. The title of the debate relates to the compensation scheme, which is the obvious priority of investors. However, there is also a need to interrogate the background, which raises questions about the scale, source, timing and conditions of the scheme.

The investors’ starting point in the financial scandal was to receive and consider advice from their independent financial adviser. As the hon. Gentleman suggested, the funds were clearly advertised and marketed as cautious managed. That would have sounded reasonable and fitted the risk profile of many private investors across the country.