Regulations and Law

Grenfell: Lessons for the Investment Community

  The Grenfell Tower disaster shocked and saddened the whole of the UK. It leaves questions about how such a tragic series of failings, which led to the disaster, were allowed to happen. It is to be hoped that the forthcoming public enquiry will shed some light on this. A recent article in the Financial Times, however, may offer some clues. And I believe that some of the failings have parallels that the financial services industry could learn from. The article reports that building ...

It’s Getting More Difficult to Vote

It’s certainly getting more difficult to vote of late, and I am not talking about voting at General Elections but just for resolutions at the General Meetings of companies we own. This seems to be a particular problem with Capita Registrars. Here’s some examples: Whitbread: As a personal crest member, I am on the register and expect to be sent an annual report and proxy voting form (and at least the latter on paper). But no longer it seems. Whitbread ...

RBS Potential Settlement: Where’s the Justice?

It seems that the major players in the RBS Action Group have accepted the latest RBS offer. See http://files.constantcontact.com/2fe662f5101/de78446f-b327-4d5e-9eee-5fcd584c7e8c.pdf This has, in effect, enabled RBS to bully the small individual shareholders into also accepting the settlement. I say “bully” because RBS are threatening anyone who pursues the case to risk having costs awarded against them. So now the case will be settled. No-one will be found guilty. RBS will pay out £800 million (of shareholders’ money) to a group of its shareholders without ...

Rolls-Royce – Audits Investigated and AGM

Yesterday (4/5/2017) I attended the Rolls-Royce (RR.) Annual General Meeting in Derby. In former years they used to hold the meetings in London but it’s been Nottingham and Derby...

Banks and Bank Credit Card Accounting

It's going to be exciting week next week for RBS and Lloyds Bank shareholders with both AGMs on Thursday in Scotland - we expect to issue a report on events. Indeed it's going to be an exciting period ahead because the law suits by those investors in the RBS rights issue who have not yet settled, and an action over the takeover of HBOS by LloydsTSB, are both getting into court in the next few months. Having Fred Goodwin on the witness ...

Open-Ended Property Funds – Our Views

ShareSoc has now submitted our response to the consultation by the FRC on "Illiquid Assets and Open-Ended Investment Funds". This follows on from the problems experienced last year where property funds had to close to redemptions but it can affect other types of funds also such as private equity ones. In summary after listening to a number of our members on this topic, we have chosen to say that although we would not be opposed to the banning of such funds entirely, ...

Why Companies Don’t Get Struck Off, and Maven VCT5

I have had two listed companies in my last 25 years of investing, that delisted and then became worthless. But the directors refused to put them into liquidation or...

Finance Bill and Tax Changes

A General Election – What Should Be In the Manifestos?

There is to be a General Election on the 8th June in case you have not heard. That has the unfortunate consequence on freezing Government business, with the prospect of changes of Ministers thereafter. Any formal consultations - for example on improved Corporate Governance and remuneration restraints - will be deferred. So the key question now is what would we like to see in the manifestos of the leading political parties? Here's my list: A commitment to ensure that private shareholders in ...

Voting Your Shares – ISAs

One of our Members has responded to our previous note on voting your shares held in nominee accounts and in particular ISAs by saying that when he requested they submit votes on his Rolls-Royce shares the Idealing company said there would be a £30 administration charge for doing so. The ISA regulations make no provision for such a charge so I have advised that he should tell them this is illegal. Below is the relevant part of the ISA Regulations which some ...