FCA probes Aviva preference shares plans for 'compliance with market abuse regulation'

FCA chief Andrew Bailey responds to Nicky Morgan MP

The Financial Conduct Authority (FCA) has launched a review of Aviva's handling of plans to cancel £450m of high-yielding preference shares at par value, with the regulator set to make a decision on whether a full market abuse investigation is necessary.

Insurance giant Aviva was forced to abandon its intentions, which would have meant the preference shares will no longer count as regulatory capital in 2026, following pressure from investors. In a letter to Nicky Morgan MP, chair of the Treasury Select Committee (TSC), chief executive of the FCA Andrew Bailey said it is Aviva's "compliance with the Market Abuse Regulation that is forming the primary basis for the FCA's enquiries" into the company's planned share cancellation. He said the regulator's "immediate concern" in the investigation is to understand "the basis upon which Aviva ...