Yorkshire Bank has agreed a scheme, which supports investors in a failed property development operated by Arck LLP, with the FCA. The Bank has now mailed the affected investors explaining the next steps.
Having conducted its own independent review of the specific circumstances surrounding the collapse of Arck LLP, which led to investors losing their money, the Bank has put in place a scheme that provides many investors with the opportunity for speedy resolution.
Yorkshire Bank did not offer, introduce or sell investments with Arck LLP, it simply provided bank accounts for them. However, some of Arck’s literature suggested to investors that the Bank offered a guarantee of their funds that did not, and could not, have existed for the circumstances. The Bank’s support reflects the fact that investors may have placed trust in the presence of its brand.
Having reviewed their cases individually, and in agreement with the FCA, we are writing to approximately 700 investors who put money with Arck LLP explaining the outcome of those reviews. This move will provide a positive step forward and the opportunity for a much quicker resolution for the majority of Arck.
David Thorburn, chief executive of Clydesdale and Yorkshire Banks, said:
“Arck falsely represented our position; we could not have provided the protection they implied. But we believe it is right to support those who invested on the strength of our brand and the protection they believed they were getting. The approach we have agreed with the FCA is a positive step; providing an opportunity for a quicker resolution for many of the investors, while we seek to recover the funds through other avenues.”