Neil Woodford savers are step closer to redress
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Woodford savers are one step closer to redress as Link Group enters talks to sell UK arm
Savers lost in the collapse of Neil Woodford’s investment empire are one step closer to receiving compensation as the firm that oversaw a sale approaches.
Australia-based Link Group said it is in ‘exclusive talks’ to sell its UK arm Link Fund Solutions (LFS) – which oversaw the Woodford Equity Income fund – to Irish rival Waystone Group.
Link said proceeds from the sale will go toward compensating those who entrusted Woodford with their money, as well as a settlement with the city regulators investigating LFS.
Hundreds of thousands of depositors were unaffected when Link Fund Solutions suspended Neil Woodford’s flagship fund in 2019
The takeover, for an undisclosed sum, would see depositors finally receive payouts, nearly four years after the once-popular £10bn fund collapsed.
Link has given Waystone Group until the end of next month to complete its due diligence and finalize the acquisition of LFS.
The Financial Conduct Authority said it is in “advanced confidential discussions” with Link over plans to compensate investors.
and finally closed it, after a flood of investors tried to get their money out after a string of poor performances.
Woodford invested in risky early stage and privately held stocks and was unable to sell them fast enough to get the money back.
When Link realized the magnitude of the problem, it closed the fund, sold the shares and returned the money to investors.
But several sales have been at a low price, and savers have lost around £1bn since the fund was frozen.