IAG removed from MSCI indices over rules breach
IAG has been removed from several of MSCI’s global equity indices after falling foul of the US index compiler’s rules on foreign ownership of shares. Its move came because of a decision by IAG to meet EU rules on ownership by capping the level of shares non-EU investors could hold in IAG at 47.5%. EU regulations stipulate that airlines must have a majority of shareholders based in the bloc in order for the airline to retain its flying rights. The change meant IAG fell short of MSCI index criteria known as “foreign room”, which sets out minimum thresholds for the amount of shares still available to foreign investors. Thanks to the cap, the number of non-EU shareholders in IAG had hit the maximum permitted amount and thus there were insufficient shares available to other non-EU investors. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-02-27/oneworld/iag-removed-from-msci-indices-over-rules-breach
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IAG removed from MSCI indices over rules breach
IAG has been removed from several of MSCI’s global equity indices after falling foul of the US index compiler’s rules on foreign ownership of shares. Its move came because of a decision by IAG to meet EU rules on ownership by capping the level of shares non-EU investors could hold in IAG at 47.5%. EU regulations stipulate that airlines must have a majority of shareholders based in the bloc in order for the airline to retain its flying rights. The change meant IAG fell short of MSCI index criteria known as “foreign room”, which sets out minimum thresholds for the amount of shares still available to foreign investors. Thanks to the cap, the number of non-EU shareholders in IAG had hit the maximum permitted amount and thus there were insufficient shares available to other non-EU investors. <br/>
