The Parliamentary Select Committee has been looking into the problems with split capital investment trusts recently.
The committee accused the industry regulator, the Financial Services Authority of not being as pro-active as it might have been in identifying and responding to the developing dangers. Many people invested in split capital investment trusts believing them to be low risk. However, following their collapse and the speculation of a 'magic circle' of professionals using the investments for their own benefit the Committee have called for compensation.
The Commission also called for "very severe penalties" for individual forms or persons found guilty of misconduct.