Aberdeen retains Fishwick to fight claims

Christopher Fishwick, the former Aberdeen Asset Management fund manager who was forced to step down after a string of its split-capital investment trusts collapsed, is being paid a year's salary to advise the company on how to fight legal claims over the distressed sector.

Christopher Fishwick, the former Aberdeen Asset Management fund manager who was forced to step down after a string of its split-capital investment trusts collapsed, is being paid a year's salary to advise the company on how to fight legal claims over the distressed sector.

Mr Fishwick left Aberdeen in October 2002 after presiding over various split-capital funds that went into administration.

Aberdeen has since become one of the central parties being investigated by the Financial Services Authority over allegations that a "magic circle" of fund managers and brokers colluded to artificially inflate the price of split-capital funds.

It has emerged that as part of Mr Fishwick's severance terms with Aberdeen, the company agreed to pay him for a year to advise it on the FSA investigation and on separate legal cases being prepared by private shareholders who have lost thousands due to the collapse of splits.

Mr Fishwick, dubbed the "unacceptable face of the City" by MPs on the Treasury Select Committee for his involvement in the sector, received a pay-off of £1.9m from Aberdeen.

He could now face being pursued personally by the FSA for his role as a director of several split-capital funds. The watchdog is pressuring 21 firms which offered splits to agree to pay compensation to investors and last week sent out letters to each party detailing the evidence amassed against it.