UK MP calls for Guernsey consultation on compensation

A UK MP has called for more consultation with Guernsey over plans to compensate investors who were mis-sold Arch Cru funds.

Alun Cairn said the island's authorities should take a lead with the UK's Financial Services Authority in negotiating settlements.

Mr Cairn leads a parliamentary group aimed at investigating the issue.

He said consultation with authorities in Guernsey had been delayed following the island's election in April.

The FSA in the UK is considering plans to set up a £100m fund to provide compensation for 15,000 people who were mis-sold the high-risk funds before they were suspended in March 2009.

Mr Cairn said Guernsey is in a good position to negotiate settlements as many funds were sold through the Channel Islands Stock Exchange.