Thousands to miss out on split-caps compensation

THOUSANDS of savers may miss out on the compensation package being negotiated between the government and companies involved in the split capital investment trust scandal, reports the Observer today. This is because asset managers BC Asset Management and BFS are not involved in the discussions, as they do not have the funds to pay for compensation. These two firms are believed to account for around ?300m of the roughly ?900m pounds of losses incurred by holders of splits, with the Financial Services Authority having no powers to compel compensation payments. The remaining firms, including Aberdeen Asset Management, are discussing a ?200m package in exchange for the FSA dropping enforcement proceedings against them. The managing director of BC Asset recently received a ?25m windfall from a split capital trust.