Harcus Parker accuses FCA of 'inaccurate summary' regarding potential third party Woodford claims
Harcus Parker senior partner Damon Parker acknowledged that investors will theoretically be able to file claims against third parties involved in the collapse of the former WEIF but argued it will be “impossible” to do so in practice.
Writing to claimants, Harcus Parker senior partner Damon Parker offered a trio of reasons to vote against the proposed redress scheme, including an insufficient payout and the relinquishing of rights regarding potential Financial Services Compensation Scheme claims.
«The practical effect of the redress scheme is to prevent investors from legally pursuing Link and the other entities that played a part in causing their losses,» Parker argued. «Note that the FCA denies this and has recently published an inaccurate summary of the position on its website.»
Harcus Parker urges Woodford investors to vote against 'bad deal'
Speaking to Investment Week, Parker acknowledged that investors will theoretically be able to file claims against third parties involved in the collapse of the former WEIF but argued it will be «impossible» to do so in practice.
He cited the contribution liability detailed in the scheme of arrangement, which essentially indemnifies Link Fund Solutions from any claims that arise from proceedings against third parties.
The clause reads: «LFSL shall not be responsible for any cost, expense, loss or liability (including, without limitation, any liability for adverse costs) incurred by a scheme creditor or any of its representatives in connection with any third party proceedings.
»All costs associated with commencement or continuation of proceedings in respect of the third party proceedings shall be for the account of the scheme creditor only (including, for the avoidance of doubt,
Read more on investmentweek.co.uk
