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.