The AITC is setting up a charitable foundation it hopes will raise millions of pounds to provide financial support to victims of the split-capital investment trust fiasco.
Announced by director general Daniel Godfrey at the AITC conference for directors in London this week, the foundation is seeking to establish a hardship fund for investors who have suffered.
The AITC says the foundation hopes to raise up to £10m for the fund from companies it believes have done well in the past in the split-cap sector. It has already secured pledges of £1m.
Godfrey will send letters to other firms in the coming weeks urging them to contribute. Any payouts from the fund will be based on each applicant's individual financial circumstances and will not be classified as compensation.
Communications director Annabel Brodie-Smith says: “We feel a responsibility to those investors who have suffered financial hardship and we hope that this fund will help them overcome some of their difficulties.”
Alan Steel Asset Management consultant Alan Adam says: “It is a step in the right direction. One would expect companies responsible for the losses to put into the fund – especially Aberdeen Asset Management which has made money from selling funds to New Star.”