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Split-cap offers before Xmas

Fund Distribution Limited will make its first compensation offer to split-cap investors in December and says it will pay out within four weeks if claimants accept.

Offers will be open for five weeks and claimants can reject an offer but would be inelig- ible for a second round of compensation next spring.

FDL was set up last year to distribute 144m compen- sation from 21 firms following involvement in the splits’ deb- acle. It expects to pay out the majority of the money in the first round. Compensation forms were sent to investors in April. Initially, FDL said it expected 50,000 people to claim but it only received 40,000 completed forms.

Compensation is available to people who held splits between July 2000 and June 2002 and whose aggregate los- ses were more than 250.

FDL fund commissioner Mike Ellis says: “Each appli- cation has been looked at ind- ividually with an emphasis on consistency, accuracy and fairness in our approach.”

Capital Asset Management managing director Alan Smith says: “It has taken a long time for FDL to go through the process. After nearly two years, giving investors just five weeks to decide does not seem long enough. Eight weeks might have been better, giving investors sufficient time to take advice.”

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