The vast majority of investors who were offered redress for losses from split capital investment trusts have signed up to the industry-funded compensation scheme in a move that will prevent about 20,000 aggrieved investors from pursuing compensation claims through the ombudsman or the courts.
Fund Distribution Ltd, the £142m compensation scheme set up by the Financial Services Authority and funded by managers and marketmakers of split trusts, said 96% of the 25,000 eligible investors had responded to its offer with “the overwhelming majority” signing up for compensation.
References: Financial Times 03/06/06 page 2
