NAB refunds Arck losses
NAB's Yorkshire Bank will "support investors in a failed property development operated by Arck LLP," the bank said this week about the latest of many redress matters to drag on its earnings.Yorkshire Bank received around 350 claims, worth £21 million, in relation to its role in the failed property investment firm, Arck.The bank said that "having conducted its own independent review of the circumstances … the bank has put in place a scheme that provides many investors with the opportunity for speedy resolution." Yorkshire emphasised that it "did not offer, introduce or sell investments with Arck LLP, it simply provided bank accounts for them."The bank said that Arck "falsely represented our position; we could not have provided the protection they implied."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."The Financial Conduct Authority in the UK estimated that investors lost around £45 million. All qualifying investors who sign up to the support scheme will receive their money back plus 2.5 per cent interest. Yorkshire Bank will then take their place as a creditor and seek to recoup the funds from Arck.