Split cap investors in line for rescue plan as Exeter folds
Around 30,000 investors affected by the £700m split capital investment trust debacle have been invited to claim compensation.
The Financial Services Compensation Scheme (FSCS) has ruled one of the firms involved – Exeter Fund Managers – to be “in default”. This could trigger compensation schemes of up to £48,000 each from each investor.
The FSCS said that the splits issue, in which investors’ money was split between different share classes, was likely to increase the levy on financial services companies this year, although it declined to apply hard figures to the matter.
Ron Devlin of the FSCS said: “Some straightforward claims may be completed in a matter of weeks while the more complicated ones will take longer. People with a valid claim against Exeter for money lost in splits can find more information at our websites fscs.org.uk or by calling us on 020 7892 7300.”
The regulators have decided that the marketing material issued by Exeter which claimed its investment vehicles were “low risk”, misled investors as to the true scope of the risk they were taking.
Anyone who can show this literature caused them to buy or retain the funds after 1st April 2001 may be in line for compensation.