Compensation for split-cap investors, which was due to be paid by Christmas has been further delayed after Fund Distribution Ltd said it will not pay out until the end of January, as it has taken longer than expected to process the 40,000 applications they have received.
Investors have been waiting for more than a year for Fund Distribution Ltd to make them an offer. They have around £144 million to distribute, and believe that investors should receive around 50p for every £1 lost. The company was set up on Christmas Eve 2004 to make compensation payments and is being funded by the 20 firms involved in the split-cap crisis.
Once the company has made the offers, investors must decide whether to take the money, or pursue private lawsuits against the providers.
Our view
Another month cannot hurt although I assume many many would like compensation sooner rather than later.