Capita takes £17.9m hit from Arch Cru fallout

Capita has reported costs of £17.9 million related to the fallout from the Arch Cru funds debacle in its results for 2011.

The £17.9 million costs include Capita's contribution towards the £54 million redress scheme for Arch Cru investors brokered by the Financial Services Authority.

Capita, authorised corporate director (ACD) for the funds, has contributed towards the scheme alongside fund depositories HSBC and BNY Mellon.

Capita set aside £30 million to pay for costs related to the Arch Cru funds in its 2009 results. Around £10 million of that was spent in 2009, with the £17.9 million announced in its 2011 results included within the £30 million provision.

Capita said it did not anticipate any further provisions related to the Arch Cru funds.

It noted in its results that its ACD business Capita Financial Managers (CFM) had agreed to the redress scheme with the FSA. 'Under the terms of the agreement, CFM along with the depositories of the funds voluntarily contributed to the establishment of a £54 million payment scheme. CFM's contributions to this payment scheme were already provided for within the 2009 accounts. The directors anticipate that n further provisions are required.'