At their peak in September 2008, the Arch Cru funds had £645m under management, but thousands of private investors lost money and they were suspended in 2009. At the time of suspension, the net asset value of the funds was £362m.
On 18 December 2012 the FSA published three decision notices against Arch Financial Products, chief executive Robin Farrell and former compliance director Robert Addison. Deepak Nambisan acted as sole counsel for the FSA’s Enforcement Division in the contested Regulatory Decisions Committee meeting as a result of which these notices were handed down. The decision notices set out that the FSA has decided to prohibit Mr Farrell and Mr Addison from performing any role in regulated financial services and to fine Mr Farrell and Mr Addison £650,000 and £200,000 respectively. The regulator says in the notice for Arch that it would have imposed a fine of £9m but for the firm’s financial position and that the FSA has decided to issue a public censure in respect of Arch’s conduct.
Arch Financial Products, Mr Farrell and Mr Addison have each referred the matters to the Upper Tribunal, where Deepak Nambisan will continue to represent the FSA’s Enforcement Division.