BusinessCompany NewsNo one to be charged over ‘splits’ scandal

No one to be charged over 'splits' scandal

Five year investigation yields no charges

Accountancy firms that may have feared being implicated in the
split capital
investment trust scandal
– commonly known as splits’ – can rest easy after
the FSA closed its five-year investigation
into the matter the without charging, fining or censuring a single individual or
firm.

Tens of thousands of small investors lost hundreds of millions of pounds
investing in so-called splits – investment trusts carrying several different
classes of shares. The trusts were often loaded up with debt and invested in
technology stocks. They collapsed in value when the share market plunged from
2000 to 2003.

‘The FSA has now resolved and discontinued its investigation in respect of
the remaining firms and individuals under investigation,’ it said.

Further reading:

Major overhaul for City watchdog

Grant Thornton liquidates scandal trusts

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