We reported last week that the industry regulator, the Financial Services Authority had gained agreement from the majority of providers within the Split Capital Investment Trust market to try and organise a compensation fund.
Whilst it was thought that most providers had agreed to the collective compensation fund to try and ease the burden for those consumers caught up in the saga, more recent news seems to lean the other way.
The number of companies in agreement could be as low as 3.
Our View
The FSA is not commenting in great depth on this one at the moment so we will have to wait for further news. Over 50,000 investors have lost out as a result of investing in Split Capital Investment Trusts and these people have already waited over a year and a half for at least some light at the end of the tunnel. It seems they could be waiting a lot longer.