Earlier this year the bank’s wealth arm revealed it had set aside some £22m to compensate clients who had been invested in the AIG vehicle, which fell into difficulties during the financial crisis when some of the assets in the fund slumped below their book value.
Barclays said that the remediation was linked to a “small number” of clients when it set aside the provision in July. It initially offered to compensate clients by reinstating them to the position they would have been in had they invested in cash. It later emerged that the bank had upped its offer, and agreed to cover lost interest up to last September as well.
Following on from its initial offer of compensation, Barclays is understood to have issued offers of remediation to 95% of the affected clients,.
The majority of these are thought to have accepted, and while Barclays was unable to comment, it is believed that the accepted offers take it roughly 75% of the way through its £22m provision it set aside to deal with the matter.
