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FCA's Instruction to Pref share issuers

Gilts, bonds, and interest-bearing shares
bruncher
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FCA's Instruction to Pref share issuers

#214117

Postby bruncher » April 10th, 2019, 12:12 pm

In the wake of the Aviva debacle, in April 2019 the FCA instructed issuers of Preference shares to review and consider clarifying the terms of prefs. Does anyone know where this exercise has got to?

everhopeful
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Re: FCA's Instruction to Pref share issuers

#214163

Postby everhopeful » April 10th, 2019, 4:02 pm

I had also been wondering what was happening on this. There is nothing on the FCA website since the letter to CEOs last April and I have not seen any mention of it in the press. The Treasury Select Committee was also supposed to be on the case but I guess they have had other things on their mind.

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Re: FCA's Instruction to Pref share issuers

#214227

Postby 88V8 » April 10th, 2019, 8:02 pm

bruncher wrote:...review and consider ....


That was strong stuff for the FCA. Dynamic.
We will now hear, nothing.

As I recall, Bristol Water BWRA, and NWBD, were regarded as safe from forced redemption - oops mustn't say that or GoSiegen will be after me - when this was chewed over on Mark's late-lamented site.

Rather long both.

V8

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Re: FCA's Instruction to Pref share issuers

#215137

Postby Holts » April 15th, 2019, 11:38 am

also RAVP who specifically issued a statement to clarify their position .

hiriskpaul
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Re: FCA's Instruction to Pref share issuers

#215256

Postby hiriskpaul » April 15th, 2019, 7:23 pm

Holts wrote:also RAVP who specifically issued a statement to clarify their position .

They did a little more than that. They modified the Articles such that a reduction of capital in respect of RAVC/RAVP was treated as a variation of the class rights. i.e. class consent is now explicitly required.

https://www.theravenpropertygroup.com/m ... rcular.pdf

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Re: FCA's Instruction to Pref share issuers

#216468

Postby everhopeful » April 21st, 2019, 9:48 am

I seem to remember that ELLA was also thought to be unlikely to try to redeem but I cannot remember why. If anybody can remember the discussion on these on the Fixed Interest Board I would be very interested as I hold them along with RAVP, NWBD, LLPD and RE.B.

hiriskpaul
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Re: FCA's Instruction to Pref share issuers

#216488

Postby hiriskpaul » April 21st, 2019, 1:52 pm

everhopeful wrote:I seem to remember that ELLA was also thought to be unlikely to try to redeem but I cannot remember why. If anybody can remember the discussion on these on the Fixed Interest Board I would be very interested as I hold them along with RAVP, NWBD, LLPD and RE.B.

Ecclesiastical were very critical of Aviva and indicated that they would not pursue the same route with their own prefs. I suspect they may have significant pref holdings themselves. AFAIK though, Ecclesiastical have not altered their articles, so there is nothing to stop future management taking a different view.


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