Two months left to claim Tesco compensation
The deadline to claim compensation from Tesco is 22 February 2018.
Around 10,000 Tesco shareholders are entitled to compensation, set at a rate of 24.5p per share plus interest of 4% for retail investors (1.25% for institutional investors).
The scheme was announced by Tesco PLC with the agreement of the regulator, the Financial Conduct Authority (FCA) on 28 March 2017, and relates to Tesco’s trading statement of 29 August 2014 regarding its profit outlook for 2014/15. This outlook was corrected on 22 September 2014.
Investors who bought Tesco PLC shares or certain Tesco listed bonds between 29 August 2014 and 19 September 2014 are eligible for the compensation. Claims need to be made directly via the administrator’s KPMG Tesco compensation link.
Claimants will lose any right to compensation under this scheme if they don’t submit their claim by the 22 February 2018 cut-off point.
More on claiming Tesco compensation
You are eligible for compensation if you bought Tesco ordinary shares or certain Tesco listed bonds during the specific dates as above. Where you are a ‘net purchases’ – if you bought more shares/bonds in the period than you sold, you’ll only receive compensation if there is a genuine economic loss.
In order to claim, you will need to provide the following documents:
- Identification documents for individuals or authorised signatory list for entities;
- Bank account statement for the account to which you have requested any payments to be made; and
- Evidence of the transactions e.g. broker statements and contract notes.
Compensation will be paid differently in respect of shares held within ISAs and SIPPs.
Compensation for Tesco shares/bonds held in an ISA is not paid directly back into the ISA. However, the compensation can be paid in without the amount counting toward the annual ISA allowance, according to platform, Hargreaves Lansdown which earlier this year helped its clients with claims.
In the case of SIPP investments, claims must be made by the pension trustees and action shouldn’t be needed by the investor. However, you should check with your pension company that this is being done. Compensation will be paid directly back into the SIPP and will not count towards your annual contribution allowance.