Link Fund Solutions to pay up to £235mn to Woodford investors

Link Fund Solutions has agreed with the UK financial regulator to pay up to £235mn to investors who suffered from the collapse of Neil Woodford’s Equity Income fund.

The Financial Conduct Authority said the redress package will cover the losses of more than 300,000 investors who had money in the fund when it was frozen in 2019.

Link Fund Solutions, Woodford’s fund administrator, will provide the compensation with “a material contribution” from its parent group, Australian company Link Group.

The agreement is subject to the completion of a sale of Link Fund Solutions to rival company Waystone Group.

“The FCA’s investigation raised serious concerns about Link Fund Solutions’ management of the liquidity of the Woodford Equity Income Fund,” said Therese Chambers, executive director of enforcement and market oversight at the FCA. “LFS’s actions appear to have caused significant losses for those investors who remained in the fund when it was suspended.”