Fsa in Cleft Stick Over Splits; Pressure to Find Evidence of Fraud Sets It Against Firms Fearing Litigation
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Summary
The Financial Services Authority is facing a choice between appearing to exonerate completely the firms involved in the split- capital investment trust scandal or embarking on a four-year pursuit of them through the courts.
The FSA is under pressure from all sides to agree a (pounds) 275m voluntary settlement to bring early compensation to tens of thousands of private investors, but it could face a political backlash unless the settlement includes a clear statement that its two-year inquiry did indeed find evidence of fraud.See the full content of this document
Extract
Fsa in Cleft Stick Over Splits; Pressure to Find Evidence of Fraud Sets It Against Firms Fearing Litigation
The firms, however, are likely to be concerned that any admission of wrongdoing would open the floodgates to a wave of litigation from hedge funds, many of which bought into the trusts as a "litigation play" ...
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