St James's to pay £6.9m to AIG investors

St James’s Place is to make a £6.9 million goodwill payment and will make a preferential loan facility available to clients who it advised to invest in the troubled AIG Life enhanced fund.

The company said that it would make a one-off payment to clients who are invested in the enhanced fund in proportion to the assets held. The payment will total £6.9 million.

In addition the company will stump up £4.8 million to provide 1% of the amount lent through a credit facility that has been arranged with the Bank of Scotland Private Banking.

‘The collapse in the money markets is unprecedented and our clients are the victims of an extreme and unforeseeable set of circumstances,’ said David Bellamy, chief executive of St James’s Place.

‘Nevertheless, we recognise the inconveniences and distress this will have caused and want to help.’