§ Dr. CableTo ask the Chancellor of the Exchequer (1) what steps are being taken by the Treasury and the FSA to investigate(a) mis-selling and (b) financial solvency in respect of split level investment trusts; [7504]
(2) what investigations have been carried out by the Treasury and the FSA into the possible mis-selling of zero coupon preference shares by investment trusts. [7505]
§ Ruth KellyI understand from the Financial Services Authority that they have been considering for some time the sale of 'exotic' products, including split capital investment trusts, to retail investors. It issued a Consumer Alert on 9 March 2001, entitled "Be wary of exotic ISAs, warns financial watchdog". In March 2001, it also issued specific guidance to financial advisers, reminding them of their responsibility to ensure that investors are aware of the risks involved in purchasing split capital investment trusts.