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Court’s go-ahead sought to compensate BFS investors

The liquidator of BFS Investments is appealing to the High Court to allow it to pay split-cap compensation now rather than wait until the FSA completes its investigation into the firm.

BFS Investments, one of the firms at the centre of the split-cap collapse, went into liquidation in February. It is being investigated by the regulator as it did not join the £200m Funds Distribution Limited scheme to compensate investors.

Investors who lost out in the split-cap debacle were in line to receive about 30p in the pound but BFS’s liquidator, Grant Thornton, is barred from distributing compensation until the FSA has completed its investigation.

According to reports, Grant Thornton is so frustrated by the delay that it will ask the High Court this week for special dispensation to release cash to investors. It is understood to be concerned that investors will lose out more as the delay continues, adding to the legal bill and reducing the value of assets available for compensation.

Grant Thornton was unavailable for comment at the time of going to press.

An FSA spokesman says: “Our investigations are at an advanced stage.”


Move to sell off £4bn closed annuity business

Zurich is looking to sell its closed book of annuity business.Bids for the business, valued at just under £4bn, were lodged with Zurich’s advisers at Lehman Brothers last week.Commentators say Prudential, Aegon and Aviva are the leading contenders for the business although all three have refused to comment while Synesis Life, also touted, was unavailable […]

FSA nervous at results of sub-prime probe

The FSA says it is nervous about the results of its investigation into the effectiveness of sub-prime mortgage regulation.Speaking at the Council of Mortgage Lenders’ annual conference, it said that after banning over 200 non-compliant ads from sub-prime brokers and finding many of those firms were also selling adverse deals to people with no evidence […]

Aramid hedge fund targets film industry

Aramid has set up a specialist entertainment hedge fund that will provide short and medium-term loan finance to the film and television industry.

Setback for ABI in proposed model

The Association of British Insurers appears to be losing its fight with the Investment Management Association over who should run personal accounts, say industry commentators.The Department for Work and Pensions’ second Pensions White Paper has rejected the ABI’s proposal for a personal account default fund which would split assets between competing branded providers on a […]


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