FSA clampdown on Guernsey deals

Financial advisers must contact thousands of people who bought into two Guernsey funds to see if they are eligible for compensation after Britain's markets watchdog wielded new powers for the first time in its crackdown on mis-selling.

The Financial Services Authority said up to 800 advisers who recommended the two CF Arch cru funds would have to ask customers if they want their cases reviewed for possible mis-selling, after the funds lost an estimated £141m.