The Financial Conduct Authority (FCA) has released new findings asserting that Link Fund Solutions (LFS) did not exercise due care and diligence in its management of the Woodford Equity Income Fund (WEIF).
According to the FCA, between July 2018 and the fund’s suspension in June 2019, LFS neglected to effectively manage the liquidity of the fund, failing to ensure that investors could readily access their money.
Additionally, the FCA found that LFS inadequately supervised Woodford Investment Management (WIM) and did not adequately address concerns about liquidity.
The FCA has also issued warning notices to Neil Woodford and WIM, proposing action against them for their roles in managing the WEIF.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, remarked: “Link Fund Solutions’ responsibility was to appropriately manage the Woodford Equity Income Fund and safeguard investors’ interests. Their shortcomings resulted in losses for investors affected by the fund’s suspension. It is imperative that they compensate investors for these losses, and we are pleased that the redress scheme has commenced payments.”
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Investors affected by the WEIF’s suspension are now beginning to receive a portion of up to £230 million from the redress scheme, which received approval from the High Court in February.
The FCA has clarified that there are no other parties currently under investigation regarding the WEIF.
