Tesco announced in March 2017 that it would launch a compensation scheme, administered by KPMG LLP, and today that scheme has opened.
Investors who have been affected must make a claim – compensation is not paid automatically.
Stock brokers including Hargreaves Lansdown have been working with KPMG to facilitate a claims process that is easier and simpler for their clients. The opportunity to have brokers help with claims in this way has now closed and investors must now claim directly through the claims portal KPMG have put in place.
Compensation in respect of shares held within 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.
In the case of SIPP investments, claims must be made by the pension trustees. No action is needed by the investor. Compensation will be paid directly back into the SIPP and will not be treated as a contribution. This means the payment will not benefit from tax relief but also not count towards normal annual allowance entitlements.
Danny Cox, Chartered Financial Planner at Hargreaves Lansdown, commented: “Compensating investors is the final chapter in the accounting saga and Tesco is keen to put this episode behind them, especially as CEO Dave Lewis has got the business moving in the right direction despite challenging market conditions. Stronger trading, particularly in the UK, means that after a 2 plus year absence, Tesco is planning to restore its dividend this year.
“Investors who have not yet made a compensation claim are now on the clock to submit their claims or receive nothing.”
