FSA report zeros in on split caps

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management Groups threatened with legal action as bubble bursts on product that claimed to come into its own in falling markets

Funds that 'give you a peaceful night's sleep', and splits with 'more safety features than a Volvo' that 'come into their own when stock markets are flat and falling': the marketing literature was certainly appealing but in many cases the reality has been very different. The well-documented problems with the highly geared trusts of splits have resulted in poor investor sentiment in the sector. It has also left the threat of legal action hanging over some intermediaries and split capital trust providers. The FSA has confirmed that unit trusts of zeros could also face investigation an...

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