Emma RadmoreFCA has announced that Link Fund Solutions has agreed a redress payment to investors in the LF Woodford Equity Income Fund of up to approximately £235m. The Link Administration Group will make a material contribution to this amount, which is to over losses that over 300,000 investors suffered following failings by LFS to manage the liquidity of the fund.
The agreement is subject to a sale of LFS and additional Link assets to the Waystone Group and appropriate approvals. If the sale is completed and the scheme of arrangement relating to the redress becomes effective, then LFS will agree to settle FCA’s investigation. If this does not happen, it is likely the investigation will move to a contested case.