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McFall names 21 splits&#39 firms

Treasury Select Committee chairman John McFall has named 21 firms he believes are involved in the splits&#39 debacle.

Speaking at a committee meeting last week, McFall said he believes it is important any information about the inquiry is put in the public domain and he gave a list of 21 firms he believes are involved. The committee said if there was no quick resolution to the situation from the FSA, it would start thinking about trying to resolve things itself.

McFall called the splits&#39 situation “a tumour on the body of financial services” and criticised how the FSA has handled it, saying the £350m that the regulator is looking for as compensation from the 21 firms under investigation “does not seem like much to get the problem out of the way”.

FSA chairman Callum McCarthy revealed that 30 individuals are subject to investigation in the splits&#39 inquiry.

FSA chief executive John Tiner said that three companies have already agreed to enter its mediation process and there were discussions going on with the rest to try and find a settlement.

McFall said: “I think it is important for the public to know who the firms are – I want to see this cleared up.”

Tiner said: “We remain of the view that reaching a settlement is in the best interests of both parties. Whether we reach this and whether the level of settlement is justifiable publicly remains to be seen.”

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