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's collapsed progressive growth fund has agreed to
repay the investor's 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's 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's uplift package and the FSA investigation.”
SRCE: Money Marketing
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's 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
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
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.”