The Financial Conduct Authority (FCA) have published a statement on what is happening on obtaining action and compensation from Link Group over the demise of the Woodford Funds.
They state: “Update on potential enforcement action against Link Fund Solutions. We are in advanced confidential discussions with Link Group and LFS to determine whether the FCA’s proposed enforcement action against LFS can be resolved by agreement. To assist a potential resolution, the FCA has provided time for Link Group to realise assets, including Link Group held assets, to meet the FCA’s concerns”.
See full announcement here: https://www.fca.org.uk/news/statements/update-potential-enforcement-action-against-link-fund-solutions
Comment: The Woodford Equity Income Fund was suspended in 2019 when it became apparent that the fund’s holdings were way too illiquid and could not meet likely redemption requests. It has taken over three years for the FCA to enforce any action against Link who were allegedly responsible for failing to regulate the fund managers.
The wording of the announcement hardly suggests a vigorous action to force Link to pay compensation to investors and soon. The FCA is too slow and ineffective as usual. Why should they be seeking “agreement”? They should be laying down the law to force compensation. It could be another few years before this is resolved while many elderly investors might actually die in the meantime.
Note: I have never held an interest in any Woodford funds. I would advise those who did to register with the ShareSoc campaign for legal action. See: https://www.sharesoc.org/campaigns/woodford-campaign/ . Relying on the FCA is pointless.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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