View more on these topics

Newby wants split-cap redress paid out quickly

Liberal Democrat Treasury spokesman Lord Newby is calling for the Financial Services Ombudsman to speed up split-cap investors&#39 compensation over fears that many are bec-oming too ill to fight their cases or benefit from compensation.

Newby says he has had hundreds of letters from elderly investors who have lost their entire life savings and many are waiting as long as six months for the ombudsman to even process their letters. He believes there may be an internal dispute between the omb-udsman and the FSA over funds needed to meet the cost of assessing claims.

According to Treasury select committee evidence, 24,000 investors have lost money in the split-cap crisis. The FSO is dealing with only 600 applications for compensation. It denies the hold-up is due to lack of funding and says the delay has been caused by the lengthy process of establishing whether claims fall under its jurisdiction.

Newby says: “It is important that the compensation should be agreed and paid out quickly. Many policyholders are elderly and should not be made to wait.

“This is the first major test of the FSA&#39s power. It is grappling with a huge enquiry. The investigation timetable is slow and deliberative and will not be completed until 2004.

“The remit of the FSO in all this seems unclear and this lack of clarity is adding to the delay.”

In a separate move, Aber-deen Asset Management has come under fire for failing to timetable compensation for victims of the Aberdeen progressive trust fund in its quarterly trading statement which included board member pay and bonus cuts.

Morgan Stanley research shows AAM estimated compensation for the trust could top £45m but with costs and an FSA fine could top £80m.


Matrix Money Management – Matrix Horizon Fund

Friday, 11 October 2002 Type: Fund of hedge funds Aim: Growth by investing in the Fortis investment fund Minimum investment: Lump sum £10,000 Place of registration: Dublin Investment split: 100% in the Fortis investment fund Charges: Initial 4%, annual 1.9% Commission: Initial 3%, renewal 0.4% Tel: 020 72920825

L&G newsletter online

Legal & General is now offering its &#39IFA News&#39 bulletin online in a drive to adopt e-business practices.IFA News includes updates on Legal & General&#39s products and services as well as commentary on developments in the markets affecting intermediaries.By providing the newsletter online, Legal & General aims to improve on the paper version by including […]

Fund firms put new life in pensions

One of the points identified in the Sandler report is that the pension tax regime creates artificial barriers to non-life insurance providers, such as specialist investment houses.The fiscal handicap pinpointed by Sandler is an anomaly that the Individual Pension Account was supposed to address but clearly has not. Since its introduction in April 2001, there […]

Eye-fa offers web deal

Eye-fa, a new IFA dedicated web directory, has been set up with the aim of enabling advisers to complete all their business transactions online.The site,, aims to help IFAs take advantage of the increasing number of facilities for intermediaries available online and aims to have most product providers signed up by the end of […]

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm