Fund groups lobby government to close Aviva preference share loophole

Investor pressure in March forced Aviva to back down on the plans, which were driven by legal advice owing to regulatory requirements and would have seen the preference shares no longer count as regulatory capital in 2026. In a letter to economic secretary John Glen, asset management groups M&G Prudential, Invesco, GAM, Blackrock, Edentree and Legal & General, representing a combined 29% stake in Aviva, demanded the Companies Act be changed to end uncertainty over the preference shares in circulation, according to The Times.  The letter, signed by M&G's head of corporate finance and s...