FSA steps up split caps probe

UK - The city watchdog has stepped up its investigation into split caps, with the announcement that it has started swooping on investment firms involved in the controversial trusts.

The review started this week and focuses on financial advisers, who sold and marketed the products, and investment managers.

The Financial Services Authority wants to determine if there is any evidence of misselling or collusive behaviour within the so-called "magic circle", which could constitute market abuse.