Watchdog gives splits firms more time

THE Financial Services Authority has again extended the deadline for the 21 firms involved in the split-capital investment trust scandal to sign up to mediation.

The latest extension, to Friday, comes as John Tiner, chief executive of the City regulator, prepares to face the influential Treasury Select Committee on 23 June to answer questions on the long-term savings market. It is expected that Tiner will also be grilled on the splits situation.

It is believed that none of the 21 firms is currently in mediation, an admission that will be extremely embarrassing for the regulator.

A handful of lawyers attended a meeting last Tuesday with two of the three mediators to air their clients' grievances about the FSA's conduct.

It is understood that Andrew Proctor, head of enforcement at the FSA, was asked to leave the meeting by the mediators because they believed he had pre-judged the case.