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...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
