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Woodford Equity Income: Link settlement with FCA

TheGreenFrog
TheGreenFrog Posts: 383 Forumite
100 Posts Second Anniversary Name Dropper
in Savings & investments
Link and FCA appear to have reached a conditional settlement on Woodford related matters which will deliver £235m in redress to WEIF investors:



It is conditional on an agreed sale of Link Fund Solutions proceeding and, more interestingly, on Woodford Equity Income investors agreeing to waive their claims via a scheme of arrangement (which I think is 75% by value of those voting).  Which leads me to wonder whether those who are part of the class action litigation against Link will vote for the scheme as it will mean giving up their claim - not sure where they are left on legal costs if that happens.


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Comments

  • ForumUser7
    ForumUser7 Posts: 2,548 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    https://www.thisismoney.co.uk/money/markets/article-11993727/Woodford-investors-FINALLY-set-receive-share-235m-redress.html
    If you want me to definitely see your reply, please tag me @forumuser7 Thank you.

    N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Bizarre that Woody walks away unscathed from this while Link gets on the hook for the compensation
    poppy10
  • granta
    granta Posts: 574 Forumite
    Tenth Anniversary 500 Posts Photogenic Name Dropper
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!
  • TheGreenFrog
    TheGreenFrog Posts: 383 Forumite
    100 Posts Second Anniversary Name Dropper
    edited 20 April 2023 at 4:40PM
    I would
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!

    You will almost certainly need to remain a holder to get the compensation envisaged by the FCA settlement.  I have a (fortunately small) WEIF investment and when I moved platform a couple of years ago I left the fund in my old platform which agreed not to charge anything going forward.

    Assuming your old platform will charge you for retaining WEIF it may be worth trying to work out how much the compensation is likely to be.  The last distribution in Nov 2022 was of approx £20m in total so look what you received last time and multiply by 11 or 12 (as headlines have £235m as the maximum compensation).  There is also a small residual value in the fund from unrealised investments.



  • granta
    granta Posts: 574 Forumite
    Tenth Anniversary 500 Posts Photogenic Name Dropper
    TheGreenFrog said:
    I would
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!

    You will almost certainly need to remain a holder to get the compensation envisaged by the FCA settlement.  I have a (fortunately small) WEIF investment and when I moved platform a couple of years ago I left the fund in my old platform which agreed not to charge anything going forward.

    Assuming your old platform will charge you for retaining WEIF it may be worth trying to work out how much the compensation is likely to be.  The last distribution in Nov 2022 was of approx £20m in total so look what you received last time and multiply by 11 or 12 (as headlines have £235m as the maximum compensation).  There is also a small residual value in the fund from unrealised investments.



    Thanks, that's helpful. I have a tiny holding so will do some sums. The other unknown is timeframe....paying a monthly fee to the platform for months will erode any compensation anyway. Which platform is allowing you to hold without charge?
  • masonic
    masonic Posts: 28,215 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 20 April 2023 at 5:03PM
    granta said:
    TheGreenFrog said:
    I would
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!

    You will almost certainly need to remain a holder to get the compensation envisaged by the FCA settlement.  I have a (fortunately small) WEIF investment and when I moved platform a couple of years ago I left the fund in my old platform which agreed not to charge anything going forward.

    Assuming your old platform will charge you for retaining WEIF it may be worth trying to work out how much the compensation is likely to be.  The last distribution in Nov 2022 was of approx £20m in total so look what you received last time and multiply by 11 or 12 (as headlines have £235m as the maximum compensation).  There is also a small residual value in the fund from unrealised investments.



    Thanks, that's helpful. I have a tiny holding so will do some sums. The other unknown is timeframe....paying a monthly fee to the platform for months will erode any compensation anyway. Which platform is allowing you to hold without charge?
    iWeb certainly would be, as an example. The likes of Interactive Investor and Halifax Sharedealing would charge nothing extra if you had other holdings there.
  • TheGreenFrog
    TheGreenFrog Posts: 383 Forumite
    100 Posts Second Anniversary Name Dropper
    granta said:
    Which platform is allowing you to hold without charge?

    Charles Stanley
  • jimjames
    jimjames Posts: 18,946 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    granta said:
    TheGreenFrog said:
    I would
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!

    You will almost certainly need to remain a holder to get the compensation envisaged by the FCA settlement.  I have a (fortunately small) WEIF investment and when I moved platform a couple of years ago I left the fund in my old platform which agreed not to charge anything going forward.

    Assuming your old platform will charge you for retaining WEIF it may be worth trying to work out how much the compensation is likely to be.  The last distribution in Nov 2022 was of approx £20m in total so look what you received last time and multiply by 11 or 12 (as headlines have £235m as the maximum compensation).  There is also a small residual value in the fund from unrealised investments.



    Thanks, that's helpful. I have a tiny holding so will do some sums. The other unknown is timeframe....paying a monthly fee to the platform for months will erode any compensation anyway. Which platform is allowing you to hold without charge?
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!
    If you weren't locked in to the fund and had sold out beforehand it seems unlikely that you'd get any compensation. Anyone locked in will still have a holding as it appears to be impossible to dispose of it even though it's now such a tiny amount.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • granta
    granta Posts: 574 Forumite
    Tenth Anniversary 500 Posts Photogenic Name Dropper
    jimjames said:
    granta said:
    TheGreenFrog said:
    I would
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!

    You will almost certainly need to remain a holder to get the compensation envisaged by the FCA settlement.  I have a (fortunately small) WEIF investment and when I moved platform a couple of years ago I left the fund in my old platform which agreed not to charge anything going forward.

    Assuming your old platform will charge you for retaining WEIF it may be worth trying to work out how much the compensation is likely to be.  The last distribution in Nov 2022 was of approx £20m in total so look what you received last time and multiply by 11 or 12 (as headlines have £235m as the maximum compensation).  There is also a small residual value in the fund from unrealised investments.



    Thanks, that's helpful. I have a tiny holding so will do some sums. The other unknown is timeframe....paying a monthly fee to the platform for months will erode any compensation anyway. Which platform is allowing you to hold without charge?
    granta said:
    Do you think you still need to be holding the remains of the fund to benefit from any compensation?

    I ask because (as discussed on another thread), am mid-transfer to another platform and will have to donate the remnants of Woodford fund as can't take it with me!
    If you weren't locked in to the fund and had sold out beforehand it seems unlikely that you'd get any compensation. Anyone locked in will still have a holding as it appears to be impossible to dispose of it even though it's now such a tiny amount.
    I didn't sell out in time so am locked in anyway. But i am mid transfer out of interactive investor and was planning to donate the remains of the fund as it doesn't make sense to hold and having to pay the monthly £10 fee. I can't transfer it out either so am stuck with keeping the platform or forsaking the compensation.
  • Shagg
    Shagg Posts: 16 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    The FCA bumpf says up to 77p in the pound being returned.  Does anyone know how much this equates to per fund unit?  I think the unit price was a tad over 80p when the fund was suspended.  Some value has been returned but the figures I'm getting from my platform are meaningless so I don't know where I am re proportion returned.

    (On a sidenote, the method of returning value per unit rather than cancelling units seems to me to be designed to deliberately confuse since cancelling units would be akin to selling units and thus easy for CGT loss calculations.  My platform is not set up to make sense of returning value from units.)
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