Woodford investors will be told how a forthcoming compensation scheme will operate in September this year.
A letter published by Link Fund Solutions today (28 July) gives an update on how £235m in redress will be distributed to 300,000 investors.
It follows a letter dated 20 April that informed investors about the conditional agreement the Financial Conduct Authority reached with the fund administrator.
The FCA said Link Fund Solutions has agreed to provide a significant redress payment of up to £235m to investors in the Woodford Equity Income Fund (WEIF).
This is subject to completion of a sale of the Link Group’s Fund Solutions business, which includes Link’s business and other additional assets by Link Group, to the Waystone Group.
And it is also dependent on the approval by the investors and the court of a scheme of arrangement to resolve all Link’s liabilities relating to the WEIF.
The letter today says that since April Link Fund Solutions has appointed PricewaterhouseCoopers LLP to advise it on the proposed scheme and to act as prospective scheme supervisors.
It has made significant progress in developing the structure of the scheme having undertaken further discussions with Link Group and the FCA.
Entered into ongoing discussions with relevant stakeholders to further develop the detailed terms of the scheme.
And has told Woodford investors they should know how they will receive compensation.
Subject to the outcome of discussions with Link Group and the FCA, and the court’s availability, Link Fund Solutions expects to issue a Practice Statement Letter in September.
The Practice Statement Letter will notify investors of the formal launch of the scheme; provide further details about the key terms of the scheme; and
provide details of the first court hearing in relation to the scheme.
At the first court hearing, the court will consider certain preliminary issues in respect of the scheme and be asked for permission to hold meetings of Investors to vote on the scheme.
Commenting on the development AJ Bell head of investment partnerships, Ryan Hughes said: “While the letter still does not present a firm timeline for the payment of this redress, as it is still subject to the successful sale of the business, news that details of how the scheme will operate will be provided in September at least gives investors a date to focus on.
“That will no doubt be eagerly awaited by investors who have had to wait over four years to get to this point. While the finish line may not quite be in sight, it does seem as though the sorry saga is getting close to entering the home straight.”
