FCA lines up £306m Woodford redress payment from Link – AJ Bell

Ryan Hughes, head of investment partnerships at AJ Bell, comments on the FCA’s announcement that it is likely to require Link Fund Solutions to pay a financial penalty in respect of its management of the LF Woodford Equity Income Fund.

He said: “News that the FCA is ‘likely’ to impose a financial penalty of up to £306m on Link Fund Solutions for failings around liquidity management will no doubt come as a welcome development for the thousands of investors impacted by the collapse of Woodford Equity Income over three years ago.

“This development has come on the back of a takeover bid for Link with the FCA ensuring that provisions are made from the interested party.

“This is the first sign that the investigation into the collapse of the fund is perhaps coming closer to completion, however, the FCA has made it clear that other parties remain under investigation and that Link could appeal any penalty.

“How any payment would be made to impacted investors is as yet unclear and no doubt the FCA will want to complete its wider investigation first. There will likely be further developments particularly given the breadth of the investigation but this news may be a sign that pressure from the Treasury earlier in the year has finally sped things up. Investors who have waited so patiently will be hopeful that some form of financial redress may be forthcoming and they can begin to draw a line under this sorry saga.”