THE TIMES (UK): FSA red faces in splits settlement: “Separately, Sir Philip Watts, former head of Shell, and the FSA have agreed to postpone the hearing of an independent tribunal. Watts and the regulator had asked it to rule on whether Watts was incorrectly identified and prejudiced by the FSA when it published a formal notice fining Shell £17m for misleading the market over the size of its oil reserves.” (ShellNews.net) Posted 13 Dec 04

Louise Armitstead and Dan Box

THE Financial Services Authority (FSA) is scrambling to save face in its proposed settlement with the firms embroiled in the split-capital investment-trust scandal.

In the past few days a tense stand-off between the 21 firms and the FSA, the City watchdog, over a £30m gulf in the compensation pool has yet again delayed the signing of the settlement beyond another FSA deadline.

The firms had offered a final and maximum amount of about £190m.

But the FSA, which asked for £350m a few months ago, was said to be “desperate” to secure a figure over £200m. Firms, including Aberdeen Asset Management, have agreed to make up the difference in order to reach an immediate settlement.

The FSA still intends to prosecute a handful of people it has identified as key players in the scandal, thought to include Aberdeen’s former investment chief, Chris Fishwick. On Friday Aberdeen delayed its trading statement by one week in expectation of a settlement.

Separately, Sir Philip Watts, former head of Shell, and the FSA have agreed to postpone the hearing of an independent tribunal.

Watts and the regulator had asked it to rule on whether Watts was incorrectly identified and prejudiced by the FSA when it published a formal notice fining Shell £17m for misleading the market over the size of its oil reserves.