The Financial Services Compensation Scheme has forecast it will need a further £38.3m to cover victims of CF Arch Cru.

CF Arch Cru funds were suspended on the grounds of insufficient liquidity in March 2009.

The levy will affect those in the investment intermediary sector and the life and pensions intermediary sector.

This is alongside a £60m interim levy for investment intermediaries issued last month and an annual FSCS £33m levy for 2012/13.

CF Arch Cru funds are currently going through a wind-down process which is not expected to be completed until 2015.

Therefore, the FSCS wants to issue a ‘significant part payment’ to all eligible claimants now followed by top-up payments in 2015 once the precise losses are confirmed.

The payments will be made to those claimants claiming against advisers who are no longer trading.

The FSCS said: “Interim payments will assume the value of a claimant’s investment in a CF Arch Cru sub-fund on the basis of the most recently published net asset value for that sub-fund plus a premium of 12 per cent.”

The FSCS hopes this approach will maximise the payout for claimants while reducing the risk of paying out too much compensation if funds are more than expected.