Oral Answers to Questions

Debate between Greg Clark and Paul Goggins

Tuesday 14th May 2013 Commons Chamber

[Greg Clark]

It goes without saying that the interests of the taxpayer must be paramount, and I am not aware of any of the briefing that the right hon. Gentleman refers to.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

Q13. What assessment he has made of the obligations owed by Yorkshire bank to investors in Arck LLP.

[The Financial Secretary to the Treasury (Greg Clark)]

A Serious Fraud Office investigation into Arck is under way, and the Government cannot comment specifically on any ongoing investigations. However, lawyers acting on behalf of Arck investors have themselves announced that the Financial Ombudsman Service is investigating complaints about Yorkshire bank’s role as custodian to Arck LLP. If the FOS were to determine that there had been any regulatory breach or failure by Yorkshire bank, and that that had led to investor detriment, it would be able to set an appropriate level of restitution.

[Paul Goggins]

I am grateful to the Minister for that reply. A constituent of mine is one of the 750 investors who placed about £60 million of their pension funds and savings into a ring-fenced, segregated account at Yorkshire bank. When Arck LLP went into liquidation, it was discovered that there was just £25 left. The Minister must agree that Yorkshire bank has some serious questions to answer. Will he raise this case with the Financial Conduct Authority and do everything he can to ensure that those investors are properly compensated?

[Greg Clark]

I will certainly do that, but I happen to know that the Financial Conduct Authority is already well aware of the case, and it is obviously taking a close interest in the continuing police investigation.