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BFS specialised in creating and selling split capital trusts which invested in other split capital trusts.
Zero dividend preference shares A share linked to split capital investment trusts.
Split capital investment trusts have different classes of shareholder, with some investing for income and some for growth.
This embarrassing ruling came only weeks after the FSA reached a settlement over a long-running scandal involving so-called split capital investment trusts.
The Aberdeen trust, marketed as a vehicle suitable for building society savers, invested in zeros, the supposedly "low risk" end of the controversial split capital investment trust structure.
And going back to zeros The Financial Services Authority is also questioning IFAs on their marketing of split capital trusts such as zeros.
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Pension mis-selling, endowment mortgage mis-selling, split-capital investment trusts, and there's plenty more where that lot came from.
Zeros are one of three main types of shares linked to split-capital investment trusts, collective funds that invest in the shares of other listed companies.
Hollands says: 'We are particularly concerned about the incestuous nature of the trusts that invest in the shares of other split-capital trusts.
Investors could also claim compensation if they were mis-sold an inappropriate fund, as happened with several high-risk split-capital funds five years ago.
Stop it pinching savers' money, would have been the obvious answer and nowhere more applicable than in the split-capital trusts scandal, which has tarnished further the reputation of an industry which already had little shine.
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