FSA tests the gallows ahead of splits resolution

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The FSA's decision to give two weeks' grace period to providers of split capital investment trusts will be scant consolation to the individuals it identifies as having mis-sold products to consumers, according to the view of Daniel Godfrey, director general of the Association of Investment Trust Companies.

"It doesn’t come as a great surprise," he says of the announcement yesterday, which gave the 21 firms called in to a secret meeting with the FSA until 16 March to commit to a regulator-proposed compensations scheme. The meeting firmed up the FSA's plans to get compensation to consumers "where appropriate", and ensure "disciplinary action is taken, where appropriate". Despite listening to 27,000 taped conversations, the FSA says its investigations are not complete, which is why it has gagged the 21 firms present from discussing details of the meeting. The AITC pointed out publicly 1...

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