Woodford and prospect of compensation

Sterlingtimes

If any compensation were to be paid in respect of the Woodford Equity Income Fund, where would the compensation be paid:

(a) to the SIPP account in which it sat at the time when the fund was frozen; or
(b) to my drawdown account to which the funds were transferred on 4 May 2020; or
(c) to my personal bank account?

(a) to (c) have different tax consequences. 

MK62

I think that would only be decided once it becomes clear whether or not any compensation is actually payable......so we'd just be speculating on exactly how any such compensation would actually get to you.

If Link appeal against the FCA decision, it could take years before this saga ends........and then there's the "class action" case, and potentially any appeal there.......

Sterlingtimes

Thank you, MK62. I wonder if this is a negotiated settlement between the much criticised FCA and Link, which is desirous of disposing of its business. The FCA agrees not to block the acquisition by the Canadian company, and the FCA is seen to have acted. The civil claim becomes more difficult to win once a settlement is agreed upon.

The settlement figure maybe 10% of the valuation at the time when the fund was frozen.