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Fund Distribution sends out splits forms

Fund Distribution is sending application forms to investors who may be eligible for compensation over the splits crisis.

It expects forms to be with investors by next week, and has set a deadline of 4.30pm on July 18, 2005 for forms to be returned.

The company was established in December to make payments to investors suffering a loss in specified zero dividend preference shares and other shares that invested heavily in zeros. Contributions to the fund now total 144m.

Fund Distribution expects to receive around 50,000 applications for compensation, and is urging investors to return their forms quickly.

Applications will be processed over the summer and compensation offers made in the autumn. Investors will have a month to consider whether to accept or reject offers which Fund Distribution hopes to pay out by the end of 2005.

Investors accepting offers will have to waive any right to pursue existing and future claims in respect of the investments specified in the offer.
Further payments may be made to those accepting offers in the New Year, depending on any balance remaining in the fund.

Fund Distribution commissioner Mike Ellis says: “I want investors to start this process early. These application forms are not something that should sit on the mantle piece for too long. We have to have firm guidelines because we want to be in a position to pay out as quickly as possible. We urge investors to complete their applications as quickly as possible and, if necessary, allow plenty of time for obtaining any information from their nominee, broker or adviser.”

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