MPs to air anger over Arch cru deal in Westminster

Shadow Energy minister Tom Greatrex has secured a Parliamentary debate on the adequacy of the Arch cru investors' deal on offer from Capita, and the role of the Financial Services Authority in the fund range's downfall.

The hour and a half long debate will be held in Westminster Hall at the House of Commons on Wednesday 19 October from 9.30am until 11am.

A minister with responsibility for the area under discussion is obliged to answer the questions raised by the debate. It is expected the government will send a Treasury minister, most likely Financial Secretary Mark Hoban.

Speaking exclusively to IFAonline, Greatrex said he will use the debate to put on record three major points of concern about the FSA-backed £54m payment deal on offer to Arch cru investors from Capita, BNY Mellon, and HSBC.

"The first point is the adequacy of the compensation scheme," he said.

"Next is the role of the FSA in the whole issue, especially what ongoing checks they were making and why it took such a long time for them to say anything about what was going on at Arch cru.

"The third point is about Capita and the assurances it provided to my IFA constituents that the Arch cru investment was safe. We are questioning what Capita knew and when they knew it."

Greatrex, who studied economics, government and law at the London School of Economics, said the purpose of the debate is to force the minister responsible to answer his questions.

"It is to get a minister in front of us to answer questions. It makes it a lot harder for them to avoid responding," he said.

Greatrex said six other MPs have already said they will attend, and he expects about 30 to be at the debate in total once they return on Monday and see the debate schedule.

A number of MPs have been trying to secure a Westminster Hall debate, he said, including Conservative MPs Alun Cairns and Guy Opperman. Cairns has previously called for a Parliamentary debate on the regulation and administration of Arch cru but had his request rejected in July.

The debate is available to watch live here on Wednesday here.