The FSA claims it has found evidence of the alleged "magic circle" of split capital investment trusts, so chief executive John Tiner is preparing to launch enforcement proceedings, reported in the Scotsman.
The 21 firms at yesterday’s closed meeting were told they have until March 16th to decide whether they will contribute to a communal compensation fund and make the losses experienced by 50,000 investors, says the Scotsman. Tiner says a forensic investigation of the companies’ accounts supports claims of collusion between them, adding the acceptance of a "collective settlement" deal would not protect the companies or individuals from further action. A successful FSA prosecution could encourage a flood of negligence claims in the civil courts against AAM, BFS, Exeter, Morley, Gartmore, ...
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