Hundreds lose splits fight

Published on Monday 6 October 2003 01:00

HUNDREDS of investors who complained to the Financial Services Ombudsman about split-capital investment trusts have seen their claims for compensation rejected because "they could have been expected to know the risks involved".

Out of a total of 4000 complaints, the ombudsman considered 600 relating to advice given by independent financial advisers, stockbrokers and fund managers. But a spokesman for the FSO said the vast majority of cases had so far been found in favour of the advisers.

He said: "Where cases have been successful, the investor is usually someone with no prior experience or exposure, for whom the investment was completely unsuitable - a ‘no risk’ investor.

"Someone with a knowledge of financial markets, even a ‘low risk’ investor, is much less likely to have their complaint upheld."