Woodford compensation payment a step closer: AJ Bell’s Ryan Hughes comments

Link Group has confirmed it is in advanced discussions with the FCA over the Woodford investigation. The FCA has also confirmed potential enforcement action against Link Fund Solutions in connection with its actions connected to Woodford Equity Income Fund.

Ryan Hughes (pictured), head of investment partnerships at AJ Bell comments on the latest news to emerge today for the many long-suffering investors in the Woodford Equity Income Fund:

“Embattled investors in the former Woodford Equity Income fund will be pleased to see further signs of progress in the FCAs investigation into the issues surrounding the role of Link Fund Solutions and the suspension and subsequent winding up of the fund. The parent company, Link Group, issued a statement to the Australian stock exchange confirming that it was in advanced negotiations with the FCA to settle all liabilities and potential redress obligations while the FCA has also confirmed this point today.

“Investors in the former Woodford fund will be grateful that progress seems to be happening. Back in September 2022, the FCA issued a draft warning notice outlining the potential of a £50m fine and redress payments of over £300m and it is these figures that Link will be negotiating with the FCA over. However, there is still no timescale on the potential agreement and even if agreed, it will still be some time before investors receive any redress as the process and structure of any such payments will need to be determined. Nearly 4 years has now passed since the suspension shocked investors and with parts of the portfolio still not liquidated, investors will rightly feel that this debacle has dragged on long enough. Hopefully, these developments indicate that we may finally be closer to seeing this sorry chapter coming to a close.”