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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


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.”


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HDLN: ScotEq Protect withdraws guaranteed protection rates


BYLN: Corey Boles


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.”


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 […]


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