ShareSoc

Hard Hitting BEIS Report on Corporate Governance and Pay

The BEIS Commons Select Committee have today published a strongly worded report on Corporate Governance after its recent hearings on the subject. Here are some of the key points they make: They agree with the Prime Minister that high levels of executive pay need to be tackled "for the benefit of society as a whole". They forcefully recommend that Long Term Incentive Plans (LTIPs) should be abolished as soon as possible because they create perverse incentives and are often a way ...

Post Date: April 5, 2017 Read more

Response to FSCS Consultation

The Financial Services Compensation Scheme (FSCS) pays out if you have lost money as a result of an authorised financial services firm going bust or otherwise being unable to pay compensation for various failings - for example a bank or stockbroker. The scheme is funded by a levy on services firms. The Financial Conduct Authority (FCA has recently undertaken a public consultation on changes to the scheme. ShareSoc has submitted a response giving our views on behalf of our Members. At present ...

Post Date: April 3, 2017 Read more

Tesco Investor Compensation and Booker Opposition

Tesco (TSCO) have agreed a Deferred Prosecution Agreement with the Serious Fraud Office (SFO) over the overstatement of profits which came to light in 2014. Tesco has also conceded to a finding of market abuse by the Financial Conduct Authority (FCA) in relation to a trading statement issued in August 2014. As a result the company has agreed to establish a compensation scheme for purchasers of Tesco's ordinary shares or bonds between the 29th August 2014 and 19th September 2014 (inclusive). ...

Post Date: March 28, 2017 Read more

Share issues – And An Interesting Rule

Spring is in the air, and companies are clearly in a mood to raise cash. A lot of these have been share placings but the reasons given have been...

Post Date: March 12, 2017 Read more

Secret Cautions by the FCA

The Financial Times reported this morning that it had obtained information from the FCA on the number of private warnings it had issued over the last 5 years using a Freedom of Information Act request. The answer given was that there had been 39 of them. ShareSoc has complained about this practice in the past, particularly with regards to AIM companies where the LSE has a similar approach. Indeed we complained about the use of private warnings in our submission to the ...

Post Date: March 6, 2017 Read more

Clamp Down on CFDs – ShareSoc’s Comments

The Financial Conduct Authority (FCA) is proposing to clamp down on CFDs (contracts for difference) and similar financial products such as binary bets. CFDs are complex financial products that...

Post Date: March 3, 2017 Read more

AIC Response to Green Paper

The Association of Investment Companies (AIC) have published their response to the Government's Green Paper on Corporate Governance. One recommendation contained therein is that "The AIC also recommends that a detailed study to assess retail investors’ access to voting services on platforms and other nominee account services is undertaken to identify any necessary reforms". This is of course a very positive endorsement of an issue that ShareSoc has been campaigning upon for some time - see our campaign page here: Shareholder ...

Post Date: February 28, 2017 Read more

The Future Value of Money

The future value of money was a question highlighted by a Government decision yesterday. The discount rate to be applied to awards to road accident victims and others, to ensure they always have enough to support their future needs, is to be changed to -0.75% (that's minus 0.75%). Previously, and for many years, it has been assumed that they could invest a cash lump sum at a rate of plus 2.5%. That was on the assumption that they could invest in ...

Post Date: February 28, 2017 Read more

FRC to Investigate Redcentric Audit

Further to ShareSoc's campaign regarding accounting irregularities and related matters at Redcentric (AIM:RCN), I am delighted to see that the FRC has launched an investigation into the audit of Redcentric's accounts by PWC: https://www.frc.org.uk/News-and-Events/FRC-Press/Press/2017/February/Investigation-in-respect-of-PricewaterhouseCoopers.aspx The FT also reports on this investigation today, coming hot on the heels of PWC's embarrassment at the Oscars ceremony: https://www.ft.com/content/4e710e1e-fcfc-11e6-8d8e-a5e3738f9ae4 This article highlights that PWC is also under investigation in relation to audits of BHS; Barclays compliance; Connaught and RSM Tenon. It has already been sanctioned in respect of ...

Post Date: February 28, 2017 Read more

Asset Management Market Study

I commented previously on the FCA's Asset Management Market Study, which suggested there was weak competition in this market. Needless to say, most asset managers do not seem to agree. ShareSoc has now submitted a response to the questions raised in that document which you can read here: Asset-Management-Market-Study-Response-2017-02-21. In summary, we agree with the general conclusions and support regulatory intervention where necessary. We also note that although the study does not address the issue directly of financial education, it is our view ...

Post Date: February 22, 2017 Read more

Group description:	This group is open to all levels of investor and is particularly popular because it meets after working hours in central London. The meeting usually has a presentation or group discussion on aspects of investing and also runs a Buys & Sells session which gives everyone the chance to see what the other group members are buying or selling and why.
Meeting Type/Venue:	The venue is near Victoria Station in a pub where the group also enjoy a meal from a typical pub menu.
Meeting Frequency/Timing:	This group meets in the evening in London. It is a face to face group that meets every third Tuesday in the month from 6.30pm to 9pm.

Group description:	This group is for those interested in investing in the USA. It is open to all investors with a special interest in this area and all levels of experience are welcome. A typical meeting will have a discussion on a particular market issue or a presentation by a member or external speaker on a subject of interest to the group. All members are expected to play a part in presenting and to take an active role in making the group of value to all its members.
Meeting Type/Venue:	As a specialist group with a wide geographic spread of members, our meetings are held on zoom.
Meeting Frequency/Timing:	Meetings are monthly and are held on the third Tuesday in the month from 11-12.30PM.

Group description:	This group was set up as a forum to discuss companies in detail, each company is introduced by a member and discussion may last one or two hours. Membership is by invitation only.
Meeting Type/Venue:	The group meets at a venue in Waterloo, London.
Meeting Frequency/Timing:	Meetings are from 11.00 until 16.30 and at two month intervals.

Group description:	This group was set up as a forum to discuss companies in detail, each company is introduced by a member and discussion may last one or two hours. Membership is by invitation only.
Meeting Type/Venue:	The group meets at a venue in Waterloo, London.
Meeting Frequency/Timing:	Meetings are from 11.00 until 16.30 and at two month intervals.

Group description:	Group focused on active investing, primarily in small / medium cap UK equities.
Meeting Type/Venue:	Zoom.
Meeting Frequency/Timing:	Monthly on Saturdays at 10am.

Group description:	Our group is a broad church that contains investors of varying age and experience. We discuss stocks and investment trusts that we have bought, sold or are interested in and the reasons behind our decisions, and try to make sense of the ever changing investment environment. Our members backgrounds are diverse and include corporate banking, engineering, teaching and the leisure industry. Discussions are robust and challenging but tend to be to be informal, and do not generally involve agendas, presentations or detailed preparation.
Meeting Type/Venue:	Our meetings are held on Zoom, although we are all based around London so try to meet centrally for lunch from time to time.
Meeting Frequency/Timing:	We meet every 2 months, generally midweek at 10.30am.

Group description:	The Options group has been meeting monthly for some 20+ years and new members who are either trading or interested in trading options are always welcome. Our members trade options predominately on both UK and USA shares, indices, currencies and commodities.
Meeting Type/Venue:	Prior to Covid all monthly meetings were at a west London golf club, close to an underground station, where we had a one course lunch prior to our meetings in a private room. Since Covid all meetings have been via video and some new members have joined who are too far from west London to meet face to face. However, it is intended that future meetings will be both in person and via video link.
Meeting Frequency/Timing:	Meetings are monthly, on the 4th Wednesday of each month, normally from 12:30 to 2:30 and sometimes run over.

Group description:	Most members are experienced investors. The main focus is on equity investments (single stocks or investment trusts). Other asset classes are discussed. Meetings involve presentations from members who are expected to lead discussions from time to time.
Meeting Type/Venue:	Meeting quarterly, physically in Central London. Other months (8 months per year) on Zoom.
Meeting Frequency/Timing:	Meetings are generally held on the 3rd Wednesday of the month. The Quarterly physical meetings are from 11am-4pm (with approximately 1 hour break for lunch), the Zoom meetings (during the other 8 months) tend to last up to 2 hours (11am – 12:45pm).

Group description:	A long-established group, however, we welcome new applications. Our meetings start at 10:15am with coffee and scones when members comment on their investment activities since the previous month. Generally, each member reports on a specific Company/IT/Fund e.t.c. This brings us to about 12:30pm when the meeting ends, and we have lunch.
Meeting Type/Venue:	In-person at a Golf Club in Belfast.
Meeting Frequency/Timing:	The group usually meets on the second Wednesday of the month, all year round, except in July and August when we have no meetings. Meetings commence at 10:15am and last 2-3 hours (including lunch).

Regulations and Law