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Investors set to bring class action against banks

Criminal lawyer Joseph Hill is forming a lobby group of investors in AIG Life’s enhanced fund, with a class action against AIG Life and four private banks that recommended the product on the cards.

Hill says UBS, Coutts, Barclays Wealth and Lloyds TSB recommended the enhanced fund to investors, which is being closed on December 15.

He says it is expected that investors will make a loss on their investments and further action will be determined depending on individual experiences that arise following the closure.

Hill says: “It looks like investors are going to make a loss, whether investors exit the fund or stay in the protected recovery fund. At September 15, which was before the problem with AIG struck, the value of the fund was already down.

“People have gone into this account thinking it was an instant access account, but now they have to leave their money in there for three-and- a-half years to have their capital guaranteed.”

A Barclays Wealth spokesperson says: “We have a dedicated team working with the AIG management to determine the best way to achieve the return of all funds to our clients. We are focusing our efforts on representing the interests of our clients in these discussions with AIG.”

UBS, Coutts and Lloyds TSB were unable to comment on the lobby group at the time of going to press.

Investors and advisers wishing to find out more about the group can contact Joseph Hill at josephhillsols@yahoo.co.uk.

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