LF Woodford Equity Income Fund Compensation: What you need to know
If you were invested in the LF Woodford Equity Income Fund, you may have received a communication from your product provider about the possibility of future compensation. This is because the Financial Conduct Authority (FCA) has ordered Link Fund Solutions (LFS), the authorised corporate director of the fund, to compensate investors.
The FCA has proposed a settlement scheme, which would see investors receive compensation of up to £235 million. The settlement scheme is still in its early stages, but investors have been sent voting forms to allow them to have their say on the proposal.
What is the voting form?
The voting form is a document that allows investors to vote on whether they support the proposed settlement scheme. Investors can vote in two ways:
- For: Investors who vote for the settlement scheme agree to the terms of the proposed compensation package.
- Against: Investors who vote against the settlement scheme disagree with the terms of the proposed compensation package.
Do I have to vote?
No, you do not have to vote. If you do not vote, your vote will be counted as an abstention. This means that you will still receive any compensation that is paid out, regardless of whether you vote or not.
What happens if the settlement scheme is approved?
If the settlement scheme is approved, investors will receive compensation in the form of cash payments. The amount of compensation that each investor receives will depend on their individual investment losses.
What happens if the settlement scheme is not approved?
If the settlement scheme is not approved, investors may still be able to pursue other legal avenues to seek compensation. However, this is likely to be a more complex and time-consuming process.
What should I do?
If you have received a voting form, you should carefully consider the terms of the proposed settlement scheme before making a decision. You should also read the Explanatory Statement, which provides more information about the settlement scheme and the FCA's reasons for proposing it.
If you are unsure about what to do, you should seek advice from a financial adviser.
The above article is for information purposes only and should not be taken as advice.
You can find more information about the settlement scheme on the FCA website: https://lfwoodfordfundscheme.com/faqs/