PracticeAccounting FirmsPwC to decide on split cap compensation

PwC to decide on split cap compensation

A mammoth task is awaiting forensic accountants from PricewaterhouseCoopers who have been called in to calculate how much money should be paid to compensate investors who lost £600m in the split cap investment scandal.

Link: Split trusts told to clean up their act

The Big Four firm has been asked by the Financial Services Authority to calculate how much 21 fund managers and stock brokers should pay to compensate the 50,000 people who invested in split capital trusts.

The scandal first broke in May 2002 when investors lost thousands of pounds in the trusts, which suffered from falling stock markets and a ‘magic circle’ of funds that invested in each other.

The complex structures were marketed as low risk investments, but many investors lost up to 90% of their money.

Those businesses that sold the trusts will be notified shortly of allegations made against them after the FSA compiled a schedule of alleged wrongdoings, ThisIsMoney.com reported.

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

3d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

4w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin