Standard Life has today released a statement saying it is hopeful of making a announcement tomorrow revealing the results of its recent solvency negotiations with the FSA. It also says that it has been informed of some “unusual trading” in its subordinated debt and that it has asked the UK Listing Authority to suspend trading in these until the announcement is made, to avoid the possibility of a false market in its bonds.
The statement reads:
“In order to bring speculation to a close, Standard Life announces that it has been holding constructive discussions over the weekend with the Financial Services Authority on the application of the realistic approach to reporting its capital position. Work is continuing today on finalising an agreement and the attendant announcement and we expect to be able to make such an announcement setting out the position in full tomorrow.
Standard life remains confident that it will be able to report a very sound relative and absolute capital position. Standard Life believes therefore that policyholders need have no concern for the company's financial strength.
However, Standard Life has been informed of some unusual trading
in its subordinated debt. Accordingly, it has today with the agreement of the FSA, requested the UK Listing Authority to suspend trading in these instruments until the announcement is made in order to avoid any possibility of a false market in its bonds.”