Lloyds Banking Group Share Offer: WMA welcomes Retail Participation
5th October 2015
Today’s news that the government1 will be selling shares worth at least £2 billion in LLoyds to private investors has been applauded by the Wealth Management Association (WMA).
The WMA is a trade association that represents 186 firms in the wealth management industry. Its members reach more than four million investors, manage in excess of £670 billion of the country’s wealth, and carry out more than 20 million trades a year.
Liz Field, CEO of the WMA, said: “We are delighted that the government will sell shares worth at least £2 billion to private investors. We are particularly pleased that small investors seeking shares worth less than £1,000 will get priority and that registering interest has been made easy for them via the dedicated campaign webpage created.
“We have been calling for the government to offer more shares to private investors during these sell-offs and the government appears to have listened on this occasion. Wider share ownership creates stronger, more accountable organisations – a positive for the government and taxpayers alike. The wider range of investors means that more people can hold management accountable for their decisions and it also means that people have a vested interest in seeing organisations like Lloyds succeed.
“This is great news for retail investors and whilst we await the detail, we would encourage other companies, particularly those with a retail focus, to give private investors the opportunity to participate in their share offerings.
“There have been too many occasions in recent times when private investors have been excluded and hopefully the Government’s announcement today can send a message to the rest of UK Plc that retail investors have a vital role to play in ensuring a diverse, accountable and vibrant equity culture. Share ownership creates a public that is more actively engaged in the free-market economy and its success. We have been campaigning for a cultural shift in the UK towards investment and savings, and we will continue to do so as it would be a huge boost to the wealth of individuals, business and the national economy.”
Notes for Editors
Details of the Share Offer
1. The Government announced that it will make available at least £2 billion worth of Lloyds Banking Group shares available to people located in the UK with those applying to invest less than £1,000 to be given priority. Members of the public will be offered a discount of 5 per cent of the market price and those investors who hold their shares for more than a year will receive a bonus share for every 10 shares they buy, up to a value of £200. The shares are expected to be made available in the spring of 2016 with further details to be published in due course.
About the Wealth Management Association (WMA)
- The Wealth Management Association (WMA) is a trade association that represents 186 wealth management firms (full members) and associate members who provide professional services to our full member firms.
- WMA members firms look after over £670 billion of wealth for over 4 million retail investors.
- WMA full members deal in stocks, shares and other financial instruments for individuals, trusts and charities through a range of services spanning execution only, advisory and discretionary fund management.
- The WMA exists to support its members and their clients in the following ways:
- To be an advocate for the sector with governments, regulators and the wider financial services community;
- To influence policy and also decision makers within the wider sector to the benefit of WMA members and their clients;
- To research and provide definitive information about the sector as required for members and in support of the influencing and advocacy objectives;
- To be a thought leader, to lead and stimulate debate and make members aware of emerging trends; challenging and provoking change.
- Facilitating the sharing of good practice, enabling the membership as a whole to benefit from the latest developments affecting the sector as well as providing support to enable them to develop good prescribe and overcome challenges.
- WMA firms operate across more than 580 sites, employing over 32 000 staff.
- These firms also run over 5.5 million client portfolios and carry out over 20 million trades a year.
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