The Financial Services Compensation Scheme has defended its outsourcing arrangement with Capita, insisting the company is not involved in claims relating to Arch cru.

Capita is the parent company of Capita Financial Managers, which acted as the authorised corporate director for the Arch cru funds between June 2006 and March 2009 when the funds were suspended.

The FSCS says it outsources some claims to third parties and has had an outsourcing arrangement with Capita in place since 2005. It says all claims relating to the Arch cru funds are outsourced under a separate agreement with Deloitte.