The Financial Conduct Authority (FCA) is reviewing the market for preference shares following the debacle surrounding Aviva and its plans to cancel preference shares at par value, which were subsequently scrapped.
In a Dear CEO letter, published by the FCA today and sent to issuers of listed irredeemable preference shares, the regulator said it is scrutinising the market for 'permanent' fixed income shares, such as those that are described as being perpetual or irredeemable, which will include ensuring investors have access to the information they require in order to assess the risks and rewards of owning the shares. The move follows the FCA's probe into Aviva's handling of plans to cancel £450m of high-yielding preference shares at par value, when it mooted a full market abuse investigation. T...
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