The Financial Conduct Authority (FCA) has agreed to review the preference share market following investor backlash from the Aviva “debacle,” which saw the insurer backtrack on its plans to cancel preference shares at par value.
The Financial Conduct Authority has been urged to take a hard line on the “very obvious loophole” in the regulation of preference shares to avoid a repeat of the Aviva episode and restore market stability, says a prominent financial campaigner.
The Financial Conduct Authority is to probe insurance giant Aviva over whether its plan to cancel £450m of preference shares was market abuse.
Aviva has backtracked on a decision to cancel £450m of preference shares after a wave of criticism from the industry, but it could be too late to avoid damaging its reputation.
Invesco PowerShares has launched its first preferred shares ETF in Europe.
Active investment can maximise returns and provide downside protection argues Skagens Hilde Jenssen.
