FSA provides preliminary view of Aviva's proposed reattribution offer
FSA/PN/084/2008
30 July 2008
Following agreement between Aviva and the Policyholder Advocate, Clare Spottiswoode, the Financial Services Authority (FSA) has today given a preliminary assessment that Aviva’s £1bn offer for the company’s inherited estate is fair. The assessment relates both to the payment being received by the policyholder relative to the return being made to the shareholder and the treatment of policyholders who wish to vote no.
This is a preliminary assessment based on current market conditions. The FSA will offer a final assessment, when the matter reaches the High Court, based on the offer and the market conditions at that time.
The combination of the firm’s offer and the special distribution means that an equivalent of around 70% of the value of the inherited estate would be released to policyholders, if all policyholders voted to accept their payout.
Policyholders eligible for the reattribution offer will receive a voting pack later in the year. This will set out the detail of the offer and explain the process in more detail. The Policyholder Advocate will also provide general advice at this time. Policyholders do not need to take any action at this time.
Notes for editors
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
- Further information for consumers can be found on our MoneyMadeClear website.