Split trusts told to clean up their act
The split capital investment trust industry will be told tonight that it must take urgent action to restore its reputation.
Link: Split cap trusts face tough new rules
This will be the message delivered by John McFall, chairman of the Commons committee investigating the split capital trusts scandal, which resulted in investors losing millions of pounds after many trusts collapsed.
Following the collapse, a number of Big four firms were threatened with legal action for their role in promoting the trusts to their clients.
McFall will attack the industry at a dinner attended by 150 investment trust directors, the FT reported.
‘We need to work together to ensure that confidence is re-established so that savers can feel secure investing their hard-won earnings in these products,’ he will say.
He will also push for greater transparency and better corporate governance measures be adopted by the industry.