Posted on by Sheena Gillett

Press Release

PIMFA raises concerns over potential shareholder disenfranchisement from Unilever vote

1st October 2018

PIMFA today (1st October) raised concerns regarding potential shareholder disenfranchisement that could result from the Unilever Plc vote on 26th October regarding their proposal to relocate their headquarters in The Netherlands.

PIMFA, the leading wealth management and financial advice association is voicing its fears about the guidance issued by Unilever which states that if retail investors holding their shares in a nominee company wish to participate in the vote they must apply to their broker or wealth manager to certificate part of their shareholding. This would be a mammoth logistical issue to convert thousands of holdings in time for the vote in 3 weeks, but also raises alarm as this cannot be done from an ISA or other tax-incentivised account.

PIMFA understand that this industry-wide issue could affect approximately 36 000 UK personal investors many of whom use nominee-based retail investment services and this guidance could deny members who hold their shares through nominees their entitlement to exercise a shareholder right under Section 152 of the Companies Act.

If Unilever goes ahead with its proposal, the company would drop out of all UK stock indices, including the FTSE 100 and FTSE Allshare, which in turn would force UK tracker funds and other institutional investors to sell their holdings.

Liz Field, CEO at PIMFA said:

“PIMFA have long campaigned for the growth of retail participation in shareholding and building a culture of saving and investment. Our profession is keen to ensure that private investors feel engaged in the companies that they own and are therefore deeply troubled by the potential implications of this issue. We are highlighting this matter with various stakeholders such UK Government, FCA & the London Stock Exchange and publicly request that it is urgently reviewed to avoid shareholder disenfranchisement”.

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
  • PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena.  Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association going back for 27 years – read more.
  • pimfa.co.uk

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