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Last Updated: Thursday, 21 July 2005, 08:44 GMT 09:44 UK
40,000 meet splits deadline day
Hands and coins
Wronged investors can expect compensation from the autumn
Nearly 40,000 people who lost money in the split-capital investment trust scandal have met the deadline for putting in a compensation claim.

However, an estimated 10,000 people have missed the deadline and now forfeit the right to a payout.

Splits were sold as a low-risk way to invest in shares, but when markets fell sharply in 2000 investors lost money.

The firms which sold the products put up a 144m compensation fund. Wronged investors had until 18 July to claim.

Late rush

Fund Distribution Limited (FDL), the company set up to oversee the implementation of the compensation scheme, said that the 40,000 application forms received will now be processed and that investors should start to receive payout offers in the autumn.

If people have made errors on their compensation form they will be contacted by the FDL and given three weeks to rectify their mistake.

People whose losses are greater than 250 will be first in line for compensation, the FDL added.

FDL encountered a late rush of applications.

Last week, it was estimated that as many as 20,000 investors were set to miss the 18 July deadline.

The compensation form was branded over-complex by critics.

Earlier, this month, John McFall MP, former chairman of the House of Commons Treasury Select Committee, said the fund should consider extending the deadline if substantially more people did not apply.




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