FSA warned about splits - papers 12 November

THE FSA WARNED advisers as long ago as March 2001 that there could be risks involved in recommending split capital investment trusts to clients according to a report in today's The Times. The paper says the advice was issued by the PIA, since absorbed into the FSA, and was a "regulatory update sent to all IFAs". However, IFAs are concerned that the FSA advice only covered income shares in splits, and not the zero dividend preference shares, which were sold as a secure investment to customers. IFAs complain that the existence of the letter does nothing to address the pro...