There has been some positive news for people involved with the split capital investment trusts review.
The industry regulator, the Financial Services Authority has announced that almost all of the 21 firms involved in the split caps investigation have agreed to their proposals for companies to pay into a collective compensation scheme.
Whilst the FSA did not say ALL firms had agreed, they did say that as a regulator they would continue their enforcement action whenever it was necessary.
Our View
Split capital investment trusts are understood by very few people and investors can therefore unknowingly accept a high degree of risk to their capital. Whilst the problem is being addressed, we will await the final details in respect of the compensation scheme.
If the people that are due compensation have access to it, then the FSA's work in this area will have been a success.