FCA publishes Link findings

The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore failed to act with due skill, care and diligence. It also failed to oversee Woodford Investment Management properly or to ensure that concerns over liquidity were appropriately acted upon. The FCA has issued warning notices to Neil Woodford and Woodford Investment Management setting out actions it proposes to take in relation to their conduct in the management of the fund.

The Final Notice in respect of Link confirms a finding of breach of Principles 2 and 6 and says that a fine of £50m would have been imposed if not for the fact that this would have reduced the amounts payable back to customers.

The Warning Notice Statement in respect of Mr Woodford and WIM indicates a finding of breach of Principle 2 by WIM and of Principles 2 and 6 of the Statements of Principle for Approved Persons by Mr Woodford. WIM and Mr Woodford have the right to make representation to the Regulatory Decisions Committee about the notice.