Tesco accounting scandal compensation

[hiriskpaul]

I have recently received a payment of £198 into my SIPP, which Hargreaves Lansdown has told me is compensation for the Tesco accounting scandal. I have never held Tesco shares, but did hold the Tesco 5.2% 2057 bond. I am a little surprised at this as I thought compensation was only going to be paid to shareholders. Have any other bondholders received compensation? Also, I am being a bit lazy here, but does anyone have a link to compensation documentation?

[PinkDalek]

I haven't looked for the fine detail*** but http://www.telegraph.co.uk/investing/sh ... pensation/ includes:

Holders of Tesco's 2029 "retail bond", which is popular with individual savers, are eligible for compensation under the scheme (see here for a full list of the affected bonds). which is here https://www.tescoplc.com/media/392144/list-of-bonds.pdf and includes XS0289810318 05/03/2057 £50,000 nominal.

Plus For instance, if you hold a nominal £1,000 of Tesco's 2029 bond, you will be entitled to £20.11. Bondholders will also receive interest on the compensation..

*** Might be here https://www.tescoplc.com/investors/tesc ... on-scheme/ which eventually gets you here https://assets.kpmg.com/content/dam/kpm ... r-faqs.pdf which may or may not help.

There may be other mention at TLF but maybe not on "Investment Strategies".

[hiriskpaul]

I haven't looked for the fine detail*** but http://www.telegraph.co.uk/investing/sh ... pensation/ includes:

Holders of Tesco's 2029 "retail bond", which is popular with individual savers, are eligible for compensation under the scheme (see here for a full list of the affected bonds). which is here https://www.tescoplc.com/media/392144/list-of-bonds.pdf and includes XS0289810318 05/03/2057 £50,000 nominal.

Plus For instance, if you hold a nominal £1,000 of Tesco's 2029 bond, you will be entitled to £20.11. Bondholders will also receive interest on the compensation..

*** Might be here https://www.tescoplc.com/investors/tesc ... on-scheme/ which eventually gets you here https://assets.kpmg.com/content/dam/kpm ... r-faqs.pdf which may or may not help.

There may be other mention at TLF but maybe not on "Investment Strategies".

Thanks, I found this and have been reading through it:

https://home.kpmg.com/uk/en/home/servic ... cheme.html

It seems my bond is eligible for compensation, but as I bought on 6/04/16, way outside the eligible period, I should not be owed anything:

The Tesco Compensation Scheme only relates to net purchases of the relevant bonds between 29
August 2014 and 19 September 2014. If you purchased relevant bond outside of this date range
you are not eligible to participate in the Tesco Scheme.

I did not put in a claim either.

If I was eligible, I should have received a lot more than £198, but maybe I should not look a gift horse in the mouth.

Mystifyied!

[PinkDalek]

Curious.

It looks like HL may have used the broker Facilitated Process https://home.kpmg.com/uk/en/home/insigh ... ocess.html but If you are the client of such a broker, your broker will have written to you previously. They will have either sought your permission to provide us with the necessary information or informed you that they have done so.. If they/you didn't do that and in view of the small amount remitted (which I thought looked on the low side in view of the minimum nominal), maybe they've mixed you up with someone else!

Is there a secure message on HL's portal providing further detail?

[hiriskpaul]

I have gone back to HL on this. The call I had this morning, in response to my query, was from one of their SIPP people and she went through the procedure for drawdown. I entered drawdown last year and they cannot simply transfer the £198 as it is uncrystallised. To get the money I have to take it into drawdown! Fortunately that will not cost me anything. It does not affect my fixed protection either as it is not money I have paid in.

My suspicion is that this payment is for something else. I just hope it does not disappear.

[hiriskpaul]

Finally got to the bottom of this. This is nothing to do with Tesco compensation, as I suspected. It is in fact a repayment of stamp duty I was charged on purchase of the bonds. I questioned this at the time, but was told that stamp duty is required on some bonds. It now turns out this was incorrect for the Tesco 5.2% 2057.