Investors should carefully consider options regarding Standard Life shares
PIMA reminds investors that whilst the shares resulting from the Standard Life demutualisation are able to be put in a tax-preferred wrapper (such as an ISA), doing so will have implications regarding the so-called ‘bonus shares’.
Those wishing to move these shares into tax-preferred wrappers will forfeit the bonus shares that Standard Life has promised to staff, policyholders, and customers who hold the stock at least twelve months. Under the conditions of their demutualisation affirmed in June’s policyholder vote, ‘bonus shares’ will be issued at the rate of 1 share for every 20 held continuously for twelve months. However, because shares cannot be transferred directly into an ISA but will need to be sold and then repurchased within the ISA wrapper, this will violate the conditions of the 2007 Standard Life bonus share issue.
PIMA suggests that shareholders call their independent financial adviser or stockbroker.
[i]PIMA Director General, Tony Vine-Lott said,
‘Investors need to consider their particular situation to know whether to put the shares into an ISA and thereby sacrifice the bonus share or to keep the shares exposed to capital gains tax and claim the share incentive in July of next year. We know that Standard Life is due to make more information on this subject available soon. PIMA will continue to work to ensure that investors properly understand the conditions of Standard Life’s listing.’[/i]
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