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CONRED 2.1 Application and subject matter of the scheme

Application to firms which made personal recommendations

CONRED 2.1.1R
  1. (1)

    1The whole of this chapter applies to a firm which made a personal recommendation in relation to an Arch cru fund, after which a consumer made an investment in the Arch cru fund, and to which the suitability requirements (specified at paragraph 5.1R of the instructions in CONRED 2 Annex 13 ) applied.

  2. (2)

    The Arch cru funds referred to in CONRED are any of the following sub-funds of the CF Arch cru Investment Funds and CF Arch cru Diversified Funds:

    1. (a)

      CF Arch cru Investment Portfolio;

    2. (b)

      CF Arch cru Specialist Portfolio;

    3. (c)

      CF Arch cru Income Fund;

    4. (d)

      CF Arch cru Balanced Fund;

    5. (e)

      CF Arch cru Global Growth Fund; or

    6. (f)

      CF Arch cru Finance Fund.

Application to persons who have assumed a firm's liabilities

CONRED 2.1.2R
  1. (1)

    The whole of this chapter also applies to a person who has assumed a liability (including a contingent one) in respect of a failure by a firm to whom this chapter applies.

  2. (2)

    A person in (1) must either:

    1. (a)

      perform such of the obligations as the firm is required to perform under this chapter; or

    2. (b)

      ensure that those obligations are performed by the firm;

      and must notify the FCA, by 29 April 2013, by email to ArchCruProject@fca.org.uk, as to whether that person or the firm, or both, will be performing those obligations.

  3. (3)

    References in this chapter to a firm are to be interpreted as referring to a person in (1) where the context so requires.

Wider application of certain provisions

CONRED 2.1.3R

CONRED 2.2, CONRED 2.4.1R (1), CONRED 2.8.1 R, CONRED 2.8.2 R, CONRED 2.8.3 R and CONRED 2.8.4 G also apply to any firm which has carried out any of the following regulated activities for a customer in relation to an Arch cru fund:

  1. (1)

    advising on investments; or

  2. (2)

    arranging (bringing about) deals in investments; or

  3. (3)

    making arrangements with a view to transactions in investments; or

  4. (4)

    managing investments;

except for a firm which, at the relevant time, was a platform service provider; meaning it:

  1. (5)

    provided a service which involved arranging and safeguarding and administering assets;

  2. (6)

    distributed retail investment products which were offered to retail clients by more than one product provider; and

  3. (7)

    did not carry on the regulated activities of advising on investments or managing investments.

Duration of the scheme

CONRED 2.1.4R

The consumer redress scheme created by this chapter comes into force on 1 April 2013 and has no end date.

Subject matter of the scheme

CONRED 2.1.5R

The subject matter of the scheme is whether a firm complied with the suitability requirements (specified in paragraph 5.1R of CONRED 2 Annex 13 R) in cases where the conditions in CONRED 2.4.2 R are satisfied (these are referred to in this chapter as "scheme cases").

CONRED 2.1.6R

A scheme case ceases to be within the subject matter of the scheme if the firm:

  1. (1)

    did not have sufficient information to determine the scheme case and has taken the required steps to obtain further information from the consumer but still does not have sufficient information (as more fully described in CONRED 2.5.9 R); or

  2. (2)

    has not received an opt-in from the consumer by 22 July 2013 (or later, where the provision in CONRED 2.5.1R (2) in relation to exceptional circumstances applies); or

  3. (3)

    is unable to contact a consumer (as more fully described in CONRED 2.8.3R (2)).

CONRED 2.1.7G

Where the firm has not received, by 22 July 2013, a response from the consumer to the letter required by CONRED 2.4.4 R or (where applicable) to the letter required by CONRED 2.4.5R (1) or (2), the firm should handle any complaint received from a consumer after this date in relation to the sale of Arch cru funds in accordance with the complaint handling rules in DISP, unless CONRED 2.5.1R (2) (in relation to exceptional circumstances) applies.

Defined terms

CONRED 2.1.8R

Certain words and phrases specific to CONRED are defined in CONRED App 1 and the Glossary. All words in italics are defined in the Glossary.