MPs seek punishment for 'split cap' fiasco
An all-party group of MPs today demanded the punishment of the financial experts responsible for the controversial 'split capital investment trusts' which costs innocent savers an estimated £667m.
Link: Split trusts told to clean up their act
The Commons Treasury Committee wants a full investigation into who wasto blame for the fiasco and compensation for the ordinary people wholost out.
It said that the products were mis-sold with completely inadequate warnings to potential investors about the risk of losing their savings.
The committee said: ‘We have been left in little doubt that there is substance in the suggestions that there was some form of “magic circle” operating in a manner harmful to the interests of shareholders.’
It said the Financial Services Authority should take over full responsibility and its current investigation into the fiasco should cover the full range of issues with the results published.
The committee concludeD: ‘If there are findings of significant misconduct, then very severe penalties would be appropriate and there should be wider redress forinvestors who have suffered losses.’
Treasury Committee chairman John McFall, said: ‘We call for compensation and for the Financial Services Authority to investigate what happened thoroughly and to identify those who were to blame.’