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.
The Microsoft mogul told fans a few home truths during his Reddit AMA
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...