A firm at the heart of an investigation into the split-cap scandal which left thousands of investors out of pocket has been declared in default.
BFS Investments, which went into liquidation in February 2006, has been officially declared unable to pay compensation claims against it by the Financial Services Compensation Scheme (FSCS). The FSCS says it is now ready to handle claims made against BFS Investments, one of two companies thrown out of the split-capital investment trust settlement in late 2004. The split-cap scandal plunged the financial services industry into turmoil following the dot com bubble of the late 90s. It was caused by some split-cap fund managers over-reaching themselves, borrowing additional funds to invest i...
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