Aviva Goodwill Payment Scheme | KPMG | UK
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Aviva Goodwill Payment Scheme

Aviva Goodwill Payment Scheme

Final date claims must be received by: 31 January 2019

Important information on the Aviva Goodwill Payment Scheme

The Scheme is now open and we are accepting claims.

Scheme background

Aviva plc (“Aviva”) and General Accident plc ("GA") have established a discretionary goodwill payment scheme for certain preference shareholders (the “Scheme”) which is to be administered by KPMG LLP (“the Administrator”).

KPMG LLP, as Administrator, is now accepting claims into the Scheme. The deadline for submitting claims is 31 January 2019.

Aviva has voluntarily put the Scheme in place to offer a discretionary one-off goodwill payment to certain shareholders who sold preference shares in the period from 8 to 22 March 2018 (inclusive) at a share price that was lower than the price that the preference shares returned to following Aviva’s announcement on 23 March 2018.

The Scheme is intended to put those shareholders in the same financial position they would have been in had they sold their preference shares following the 23 March announcement (when the price of the preference shares settled at a price which reflected the market’s understanding of the terms of the preference shares and Aviva’s current plans), rather than the announcement on 8 March 2018.

Aviva’s announcements regarding the Scheme can be found on the Aviva website here –

https://www.aviva.com/investors/Preference-shares/

Who is eligible?

Eligible shareholders are those who were the beneficial owners of the following preference shares (i.e. the party with the ultimate right to receive the income and the proceeds of sale from the preference shares) who entered into a sale of preference shares with a transaction date of 8 to 22 March 2018 (inclusive):

  • Aviva plc 8.375% preference shares (GB0002114154)
  • Aviva plc 8.750% preference shares (GB0002124963) 
  • General Accident plc 7.875% preference shares (GB0003692513) 
  • General Accident plc 8.875% preference shares (GB0003692737)

If you believe you may be eligible for a goodwill payment please refer to the Scheme Terms and Conditions and our FAQs for further details.

Release

Prior to receiving a goodwill payment a claimant must sign a release.

In broad terms, this will release Aviva and any member of the Aviva group from claims in relation to the preference shares (including any claims arising out of or in any way connected with Aviva’s announcements on 8 March 2018 and 23 March 2018), other than any claims arising out of any material new information that was not publicly disclosed (for example, any enforcement action by the FCA). It will also release KPMG, Aviva and GA in relation to any claims arising out of or in any way connected with the administration of the Scheme. It is important that claimants read the terms of the release carefully before signing it and, if in any doubt, claimants should take legal advice as to its effect.

A template copy of the Release is provided in the Scheme Terms and Conditions

Goodwill Payment amount

The amount payable to an eligible claimant under the Scheme will consist of the following:

  1. Net Basic Goodwill Amount - being the amount by which the volume weighted average price of the relevant series of preference shares over the five business days from (and including) 23 March 2018 exceeded the sale price for that shareholder’s preference shares transacted in the period 8 to 22 March 2018 (inclusive). Note, any gain arising from purchase transactions of preference shares during the relevant period is offset.
  2. Transaction Costs - eligible shareholders may also claim an amount equal to third party transaction costs (e.g. broker commission) incurred in respect of the sale of preference shares.
  3. An Additional Amount – a rate of 6% per annum will be applied to the sum of the Net Basic Goodwill Amount and the Transaction Costs for the period from 23 March 2018 to 31 October 2018 (inclusive), being 3 months after the launch of the Scheme. This is intended as a notional investment yield to recognise the fact that if investors had received the Net Basic Goodwill Amount on 23 March 2018 they would have had the opportunity to re-invest it for income.

Please note, we may be required to withhold tax in relation to the Additional Amount.

How to participate

The Scheme is now open and we are accepting claims. To participate in the Scheme you must lodge a completed claim form with us before 31 January 2019.

An overview of the claim process can be found here.

A copy of the claim form can be downloaded here:

Alternatively if you do not have access to a printer, please call our helpline to request for a claims pack to be posted to you.

Completed claim forms should be sent to us either via:

email to avivascheme@kpmg.co.uk; or

registered post to PO Box 75213 London, E1W 9PR.

Please note that if your broker has been in contact with you and you have given authority for them to claim on your behalf, no action is required. This only applies to the following UK based FCA-authorised brokers which have agreed to assist in handling claims: Alliance Trust Savings Ltd, Equiniti Shareview, Selftrade, Barclays Smart Investor, Halifax Share Dealing, Bank of Scotland Share Dealing, iWeb Share Dealing, Lloyd Bank Direct Investments, Redmayne Bentley LLP, Brewin Dolphin Ltd, Hargreaves Lansdown, Interactive Investor, Interactive Investor Services Ltd, Investec Wealth & Investment Ltd and Walker Crips Stockbroker Ltd. If you have not given your broker authority to claim on your behalf, please proceed with the standard claim process outlined above.

Further information

Please refer to the Scheme Terms and Conditions and our FAQs for further information in relation to the Scheme.

Alternatively, you may call our helpline on:

UK Freephone 0808 169 7987 

International +44 (0) 203 805 2559

(Open 9am – 5pm, Monday to Friday excluding UK public holidays)