FSA suspends Sipp firm amid fraud investigation Arck General Client account at Yorkshire Bank as £12,269,425

 

A Sipp operator has had its permissions removed by the Financial Services Authority (FSA) after its directors were arrested on suspicion of fraud. The FSA has varied the permission of Nottingham-based HD Administrators on the grounds its directors Kathryn Clark and Michelle King do not appear to be fit and proper. Clark was arrested by Nottinghamshire Police on 2 March 2012 on suspicion of fraud by false representation and money laundering in relation to Arck an unauthorised investment company firm at which she is one of two managing members. The other managing member, Richard Clay was also arrested. According to the FSA Clark appears to have received, circulated or been involved in the provision of forged bank statements purporting to relate to the Arck General Client account at Yorkshire Bank. According to the FSA, King, who acted as an administrator for the HD Sipp, told the regulator she was unaware that she was approved to perform a controlled function at HDA; The regulator said she could not adequately explain how a Sipp operated and did not understand her regulatory responsibilities. Arck is subject to a civil claim by investors who allege they have lost in excess of £20 million. Around £1.3million was invested in Arck through the HD Administrators Sipp, with a further £4.5million invested through HD Administrators but not through a pension. In response to enquiries by investors as to the funds it held, Clay sent an email dated 29 July 2011 to an IFA acting on behalf of investors with a bank statement supposedly showing the balance of the Arck General Client account at Yorkshire Bank as £12,269,425 on the1 July 2011.