WIREDGOV

The FSA has been conducting an investigation into the activities of certain fund managers and brokers in the split capital investment trust sector between September 2000 and February 2002.

The FSA has now resolved and discontinued its investigation in respect of the remaining firms and individuals under investigation:

· David Bruce has agreed to resign as CEO of BC Asset Management Limited (BCAM) and to give up his existing controlled functions save for CF27 (investment management). Mr Bruce has also agreed not to perform any significant influence functions until 3 April 2009. The FSA has discontinued its investigation into BCAM.

· Roderick Crawford has agreed not to perform any customer functions until 31 December 2007 and not to perform any significant influence functions until 3 October 2009.

· Paul Glover has agreed not to perform any customer functions until 3 October 2007 and not to perform any significant influence functions until 3 October 2008.

· Anthony Reid, former CEO of BFS Investments Plc (BFS), has agreed not to perform any controlled functions until 3 October 2009. The FSA has discontinued its investigation into BFS which entered into a creditors voluntary liquidation in February 2006.

The FSA has agreed that it will take no disciplinary action against the above firms and individuals. The FSA has not made any findings of regulatory breach against them and the above firms and individuals have not made any admissions.



NOTES FOR EDITORS

1. The background to the FSA's investigation into the split capital investment trust ("splits") sector together with details of its settlement with 20 firms (the "Firms") is set out in its Press Release of 24 December 2004 (PN/2004/114) and two subsequent press releases of 14 April 2005 (PN/2005/037 and PN/2005/038).

2. The FSA and the Firms agreed a package of approximately £195 million for investors. The Firms agreed to contribute without admissions to a fund for distribution to eligible individuals who invested in zero dividend preference shares ("Zeros") and in a number of specified unit trusts and other financial products that invested in Zeros. Fund Distribution Limited ("FDL") was established to make distributions to eligible investors. Fund Distribution Limited has now completed the distribution of its funds to eligible investors. For details see its website www.funddistribution.org.  

3. The other individuals who previously gave undertakings in relation to the FSA's investigation into the splits sector without making any admissions were Christopher Fishwick (PN/2004/114), David Thomas (PN/2004/113), David Keen (PN/2004/116) and Alan Kerr (PN/2004/117). In each case, in return for their undertakings the FSA agreed to take no disciplinary action against these individuals and made no findings of regulatory breach against them.

4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

ENQUIRIES

Press: David Cliffe/Joseph Eyre 020 7066 3232

Outside office hours 07795 351 956

Public: FSA Consumer Helpline 0845 606 1234 (call rates may vary)

Website: www.fsa.gov.uk