View more on these topics

Class Law wins investor full split-cap settlement

Solicitor Class Law has secured a full settlement for a victim of the

split-capital investment trust scandal in a move it believes could

lead to compensation for thousands of investors.

Class Law says an unnamed IFA who sold the investor units in Aberdeen

Asset Management&#39s collapsed progressive growth fund has agreed to

repay the investor&#39s lost capital, which is thought to be around

£25,000.

The adviser, who asked to remain anonymous, is also paying the

returns that would have been generated if the client had invested in

a low-risk bond and all legal fees.

The investor had complained that the IFA had sold him the fund, which

invested exclusively in split-caps, as low-risk. It plunged when the

trusts collapsed, leaving around 7,000 investors facing big losses

although the number who bought through IFAs is unknown.

Class Law hopes the IFA&#39s decision will prompt other advisers to

compensate investors quickly.

But Simpsons of Brighton partner Mark Waters says: “I cannot see too

many IFAs paying out because of this. A lot of them will wait and see

what happens with AAM&#39s uplift package and the FSA investigation.”

DOCB:

SRCE: Money Marketing

PDAT: 080503

SCTN: News

PGNO: 5

RANK:

HDLN: ScotEq Protect withdraws guaranteed protection rates

SBHD:

BYLN: Corey Boles

TEXT:

The move comes as Misys head of research Dale Tranter is writing to

the network&#39s members saying that he does not expect guaranteed rates

to last much beyond the end of the year.

ScotEq Protect vows that the move, which is eff-ective from this

week, will only affect new cases and not its pipeline business.

The company announ-ced in April, when it last increased its

critical-ill-ness cover premiums, that it was withdrawing from

guarantees on stand-alone CI. This latest move aff-

ects combined term and

CI plans.

From this week, ScotEq Protect will only offer five year reviewable

rates acr-oss its protection range.

Public affairs manager Lesley McPherson says: “We will accept all app-

lications for guaranteed premiums until the end of the pipeline

period. We believe that five-year rev-iewable rates represent and

attractive alternative.”

John Joseph Financial Services director John Joseph says: “This is

not surprisingly really. I am obviously disappointed but it does mean

that those prudent companies which are in a position to continue

offering guarantees will get more business.”

Tranter says: “We do not expect guaranteed rates to last much beyond

the end of this year unless a prov-ider or reassurer comes forward

with a proposition involving significantly narrower cover.”

Recommended

Portman extends mortgage range

Portman Building Society is refreshing its mortgage range, with thenew portfolio dominated by two two-year fixed-rate deals.The rates include a 3.59 per cent deal, fixed until June 2005,available at up to 95 per cent loan to value.The loan has no mortgage indemnity guarantee charge up to 90 per centLTV. There is a fee of £300. […]

Raymond James targets IFAs with stock selection division

Raymond James Investment Services is offering an asset managementdivision allowing generalist IFAs to outsource their stock selectionand asset allocation res-ponsibilities on a white-label basis.In a move that the US giant believes is unique in the UK, RJIS isoffering to take on IFAs&#39 investment management duties as soon asthey have pooled their clients&#39 assets and completed […]

IFA Battersby takes over as LIA president

The LIA&#39s president for the next 12 months will be Jon-athanBattersby, an IFA who has sat on the board since May 2000.He is replacing Gavin Tisshaw, chairman of Maidenhead-based IFAExecutive Advisory Services. Tisshaw will remain on the board as apast president.The handover came at last week&#39s AGM.David Batchelor, an IFA with Wills & Trusts and […]

Captain Scarlett for new generation

MARGETTS FUND MANAGEMENT GERRY ANDERSON PRODUCTIONS Aim: Growth by investing in a new television series of Captain Scarlet Minimum investment: Lump sum £25,000 Opening/closing date: March 7, 2003/May 29, 2003 Charges: Initial 5.5%, annual up to 1.5% Commission: Initial 3%, renewal 0.25% Tel: 0121 236 2380 The panel: Ian Millward, Marketing director, RJ Temple, Jamie […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment