The victims of the UK’s split capital investment trusts scandal are to be compensated at the rate of 40 per cent of the losses incurred. ...

The victims of the UK’s split capital investment trusts scandal are to be compensated at the rate of 40 per cent of the losses incurred.

The independent company set up to settle the losses, Fund Distribution, will compensate 25,000 individual investors in split capital investment trusts relating to around 45,000 qualifying investments.

The payments will take into account any payments that applicants have already received from other sources.

Total losses suffered by the victims are estimated at £290.7 million ($505 million), and the fund available for distribution by FDL is around £142.6 million, of which around 80 per cent will be available for distribution after holding back a prudent provision for later compensation payments.

Investors who suffered under the scandal will receive a detailed calculation statement showing how FDL has calculated the losses for each individual investment and, if they accept the terms, will need to return their formal acceptances and signed releases to FDL no later than 4.30pm on Monday 15th May 2006.

In accepting the offer, investors will waive all rights to pursue any claims elsewhere in respect of that investment.