Share dealing warning

A DISPuTE with insurer Aviva has forced the city watchdog to warn companies about how they treat high-interest shares.

The Financial conduct Authority (FcA) criticised the insurance giant which said it would cancel £450m of preference shares, entitling investors to high fixed dividends. But Aviva did a u-turn after an outcry and an FcA threat of a probe. Yesterday, the FcA said it was reviewing the market for preference shares, saying an intention to cancel them could be market abuse. It said investors should be informed of the terms and conditions attached to their ownership of the shares, and changes to those terms should be communicated effectively.