Following an investigation into one of Britain’s biggest investment scandals, victims of Neil Woodford’s investment empire collapse are to receive a payout of £235m.
The City watchdog the Financial Conduct Authority has confirmed more than 300,000 investors who had invested in Mr Woodford’s Equity Income Fund are to be offered redress payments, more than three years after a number of popular investment funds collapsed due to a string of investments in unlisted firms that resulted in substantial losses for savers.
Link Fund Solutions, the administrator of the collapsed Woodford Investment Management vehicle, will pay the redress after the regulator found that it had not properly managed the liquidity of the income fund.
The parent company of LFS, Link Group, will sell the fund solutions business to Waystone Group to partially fund the redress payment. However, the offered payout falls significantly short of the full amount owed to savers.
