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Split-cap firms to see evidence of collusion

Split-cap providers and stockbrokers which have agreed to take part in the FSA&#39s compensation package for investors are to be shown specific evidence of what they did wrong this week.

Until now, the 22 firms the regulator has pinpointed as being potentially culpable have only been shown generic evidence of wrong-doing and this will be the first time they are presented with specific evidence about alleged collusion.

The FSA will not say how many firms have agreed to pay out compensation but it does make clear that there are no IFA firms involved, only split-cap managers and stockbrokers.

It has also confirmed that it has commissioned PricewaterhouseCoopers to come up with what it views to be appropriate compensation. The consultancy has yet to recommend a figure.

FSA spokesman Rob McIvor says: “The catalogue of errors will provide specific evidence to those who agreed to take part, which is a majority of the firms involved. Until now the information has been anonymous, now it is specific.”

AITC director general Daniel Godfrey says: “Providing specific evidence was always going to be necessary to get people to come to the table.”

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