A new charity is being founded to help provide compensation to those consumers worst hit by losses c...
A new charity is being founded to help provide compensation to those consumers worst hit by losses caused by investing in split capital investment trusts, according to the man responsible for heading the industry's trade association.
Daniel Godfrey, director general of the Association of Investment Trust Companies, says he has already been knocking on doors to obtain funds for setting up a charitable foundation, details of which are expected to be released in the near future.
The charity will "provide relief to those suffering most" from the splits debacle, especially those will not receive compensation for some time even with a good claim.
"It will not cost hundreds of millions or even tens of millions, but enough to alleviate some of the suffering being felt," Godfrey says.
Payments from the fund will be made on a "no fault" basis, and the AITC will target member firms who benefited most during the "good times" for payments into the fund, although it will not be a requirement of association membership to contribute.
The AITC's "Its" campaign helped bring about a surge of investment into investment trusts, and in particular split capital trusts, which were marketed as low-risk before the equities bear market began.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation