Apr 19, 2018
FCA calls on preference share issuers to review investor advice
The chief executive of the UK's Financial Conduct Authority has told companies to make it clear to investors whether their preference shares can be redeemed for less than the market price. The letter follows controversy at Aviva, the insurance company, which provoked an outcry last month when it said it was considering cancelling its £450m worth of irredeemable preference shares. The price of the preference shares fell sharply on the news. Preference shares tend to pay a fixed dividend, known as a coupon. Mr Taber said that, despite the outcry over Aviva's plan, other companies could also try to cancel their preference shares.
Related companies
Make a complaint about Aviva by viewing their customer service contacts.
