Call to review Yorkshire Bank role as Arck provider

THE Financial Ombudsman Service (FOS) is being urged to review 150 investor complaints against Yorkshire Bank for its role as segregated bank account provider for the failed property investment company Arck LLP, it was confirmed yesterday. Yorkshire Bank operated as a depository for the investments and investors believed sums invested in the account were protected against any failure of Arck because they were segregated and ringfenced, according to lawyers representing people who invested in Arck.

The 150 claims, including 86 claimants from Yorkshire, were submitted by law firm Regulatory Legal (RLS) on behalf of investors. The firm represents around 400 Arck investors claiming £25m in losses.

Michael Cotter, solicitor at RLS, said: “Because the issue here is the failure of Yorkshire Bank to apply established safeguards and controls, it is completely appropriate the FOS should become involved in assessing and reviewing claims on behalf of individuals.” A spokesman for the FOS said: “We’re currently investigating to see if these cases fall in our jurisdiction.”

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A spokesman for Yorkshire Bank said: “We are aware of the points raised by RLS, but are unable to comment due to the ongoing investigations into Arck.”

A spokesman for Nottinghamshire Police confirmed two people were on bail in connection with Arck LLP. No charges have been brought, the spokesman added.

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