Insiders cashing in
Sunday 11 July 1999
Payouts from last month's demutualisation of Scottish Widows, by contrast, may top pounds 40,000 and are causing a rush into investment products sold by other mutual insurers such as Standard Life and Equitable.
The Scottish Widows takeover is also putting a spotlight on a category of financial activity that could be called "insider carpetbagging".
Employees of mutual societies are entitled to buy their companies' financial products at discounts. Piecing together information gleaned from working at mutual societies and newspaper speculation, many have stocked up on products in the run-up to demutualisations, entitling them to hefty payouts.
In the absence of clearly defined laws regulating insider carpetbagging, mutual societies have set their own internal guidelines.
"The four staff involved in putting together the Lloyds TSB deal observed a self-denying ordinance," said a Scottish Widows spokesman. "They agreed neither to buy new products nor to make additions to old products that would have increased their eligibility [for payouts]."
But he conceded that other Scottish Widows staff had probably positioned themselves to maximise payouts in the run-up to demutualisation. "It happened here no more and no less than in the case of other demutualisations," he said.
Company law and Stock Exchange rules proscribe insider trading of shares by company employees. But there is nothing on the statute books that stops mutual society employees from profiting on advance information about demutualisations.
Nor is there any requirement for mutual societies to disclose how much employees have benefited from them.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 Naomi Wolf reacts to Isis 'conspiracy theories' critism after she questions whether beheading videos are real
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Douglas Carswell tells Ukip to stop blaming foreigners as youth poll shows Nigel Farage is even less popular than Nick Clegg
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...