The FCA is focused on ensuring that consumers affected by the suspension of the Woodford Equity Income Fund (WEIF) obtain redress,” the FCA said in its statement.
Link Fund Solutions managed the LF Woodford Equity Income Fund until its collapse in June 2019.
The UK regulator said that to assist in a potential resolution, it has allowed Link Group time to realise assets, including Link Group-held assets, to meet the FCA’s current concerns.
The FCA adds that it has previously confirmed that any redress figure would be based on its view of LFS’s failings in managing the liquidity of the WEIF.
The regulator states:
We know that affected investors will be keen to understand what impact this may have on them, including how any proposed scheme of arrangement would work. We will provide a further update as soon as we are able to.”
Last year in a draft notice, the FCA said LFS could be required to pay up to £306 million in redress payments, as well as a proposed penalty of £50 million.
