Split capital trusts - sophisticated, relatively high-risk investment vehicles not offered on the Irish market - have come in for some stick in Britain. There are about 130 listed funds with about £14 billion invested, including a number of funds managed by AIB Govett.

The funds split their capital between shares that provide income and shares that provide capital growth (zeros) and can gear up heavily to invest.

The problem is that some trusts have invested heavily in other trusts and as asset values fall the FSA examined possible systemic risk and solvency in the sector.

Following an analysis, the FSA said a fall in equity values of 10 per cent from September 30th levels would result in solvency problems at a "handful" of trusts. "This is not a sector about to collapse" a spokesman said.