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Woodford Equity Income: Link settlement with FCA
TheGreenFrog
Posts: 337 Forumite
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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Bizarre that Woody walks away unscathed from this while Link gets on the hook for the compensation
poppy100 -
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!0 -
I wouldgranta 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.
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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?TheGreenFrog said:I wouldgranta 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.0 -
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.granta said:
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?TheGreenFrog said:I wouldgranta 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.
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granta said:
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?TheGreenFrog said:I wouldgranta 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.
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.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!Remember the saying: if it looks too good to be true it almost certainly is.2 -
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.jimjames said:granta said:
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?TheGreenFrog said:I wouldgranta 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.
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.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!0 -
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.)0
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