KPMG opens Tesco compensation scheme

Paterniano Del Favero
Agosto 23, 2017

The scheme is administered by KPMG.

Compensation is set at a rate of 24.5p per share plus interest of 4% for retail investors.

The scheme was previously announced on 28 March 2017, when Tesco PLC (Tesco) and Tesco Stores Limited announced an agreement with the Financial Conduct Authority (FCA) to compensate investors who were net purchasers of Tesco shares or certain Tesco listed bonds between 29 August 2014 and 19 September 2014.

It also agreed with the FCA, the UK's leading financial watchdog, that it would pay £85m in compensation to shareholders.

During said period, the supermarket chain revised its profit estimate for the half year from £1.1bn, stating that an "accelerated recognition of commercial income and delayed accrual of costs" had caused it to overshoot its expected profit.

That statement was inaccurate and Tesco was forced to issue a correction in September of that year.

"Investors who have not yet made a compensation claim are now on the clock to submit their claims or receive nothing".

The administrators will then consider the claim and decide the appropriate amount of compensation payable to the claimant under the compensation scheme. The claims process is a little clunky but important to follow as it's a simple equation: "no claim, no compensation", said Danny Cox, from Hargreaves Lansdown. However, brokers can no longer help with claims and investors must now claim directly through the claims portal KPMG has put in place.

Tesco investors were clearly happy to see the back of this sorry scandal, with shares up 1.9% to 187.8p.

Tesco (LON:TSCO) has said they are to open a £85 million compensation scheme for those affected by the 2014 accounting scandal. Stronger trading, particularly in the United Kingdom, means that after a 2 plus year absence, Tesco is planning to restore its dividend this year.

"In the case of Sipp investments, claims must be made by the pension trustees".

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