Class Law, the law firm seeking compensation for investors who lost money through split cap investme...
Class Law, the law firm seeking compensation for investors who lost money through split cap investments, has secured its first win against an intermediary.
In this case the adviser sold the Aberdeen Progressive Growth unit trust of zeros to a client as a low risk investment.
The client is estimated to have lost £25,000 in the fund so far and the professional indemnity insurer of the intermediary will pay the settlement.
Stephen Alexander, partner at Class Law, said full compensation plus all legal costs would be paid to one of its clients. The capital lost, plus the equivalent earnings that would have been generated had the money been invested in a low-risk bond, will be repaid to the client when Aberdeen offers its uplift package on Aberdeen Progressive Growth in August 2005. Details of Aberdeen's uplift package to its clients are not yet known.
Alexander said this demonstrated that the IFA was accepting liability and he expected that more similar cases would follow.
He added: 'This has nothing to do with Aberdeen. Aberdeen had no relationship with the client. It was the IFA who was asked by the client for a low risk investment and was sold something that was high risk.'
At least 7,000 investors have lost money in Aberdeen Progressive Growth.
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