It emerged at the weekend that a new class action suit has been brought against several fund managers involved in the mis-selling of split-cap investment trusts.
Although investors with zero dividend shares who lost money when several of the highly geared, and therefore high risk vehicles collapsed are being compensated via the FSA's Fund Distribution Limited scheme, those with ordinary or income shares in split cap trusts did not qualify.
Speaking to The Business Online news service, Stephen Alexander, senior partner at Class Law, the firm appointed to bring the group litigation, observed that:
"It's bizarre really. They were advised as low-risk investors to buy high-risk shares in geared companies - so they were mis-sold yet assured they were safe as a Volvo."
The GBP25 million claim is being made on behalf of 75 investors. However, many more are expected to join the action.
.
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment