Woodford savers are step closer to redress as Link Group enters talks to sell UK arm
Savers who lost out in the collapse of Neil Woodford’s investment empire are a step closer to receiving compensation as the firm that oversaw it nears a sale.
Australia-based Link Group said it is in ‘exclusive talks’ to sell its UK arm Link Fund Solutions (LFS) – which supervised 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 City regulators investigating LFS.
Hundreds of thousands of savers were left out of pocket when Link Fund Solutions suspended Neil Woodford’s flagship fund in 2019
The takeover, for an undisclosed sum, would see savers finally receive payouts almost four years after the once popular £10billion fund collapsed.
Link has given Waystone Group until the end of next month to finish its due diligence and complete the takeover of LFS.
The Financial Conduct Authority said it is in ‘advanced confidential discussions’ with Link about plans to compensate investors.
and eventually closed it, after a flood of investors tried to pull their money out following a run of poor performance.
Woodford invested in risky early-stage and unlisted stocks and was left unable to sell them fast enough to return the money.
When Link realised the extent of the problem, it closed the fund, selling the stocks and returning the money to investors.
But several sales were at a knockdown price, and savers have lost around £1billion since the fund was frozen.
Read more at DailyMail.co.uk