Link Fund Solutions first court hearing extended as parties clash over class meetings
One of the key issues raised on behalf of retail investors was the potential for FSCS compensation, which would not be available to institutions or intermediaries.
While it had been expected the hearing, which saw Link Fund Solutions apply for permission to call a meeting of scheme creditors to vote on the proposed compensation, would be concluded within a day, disputes regarding class composition have led the hearing to be adjourned.
Felicity Toube KC, representing LFS, argued for all scheme creditors to be classified under a single class, offering all investors, both retail and institutional, a single meeting with equal votes on the scheme, suggesting that all scheme creditors hold the same rights against LFS.
Woodford investors set for early 2024 payout if scheme passes
This stance has been communicated as fact on the settlement scheme's FAQ page since it was first established: «For the avoidance of doubt in this scheme all scheme creditors will vote together in one class meeting.»
George Bompas KC argued against this, suggesting that two classes should be established, as institutional and retail investors have separate and unique options for recourse in the event of the scheme failing.
One of the key issues raised on behalf of retail investors was the potential for FSCS compensation, which would not be available to institutions or intermediaries.
The FSCS has not offered a conclusion on whether or not investors in the former WEIF would be eligible for compensation under the scheme, and as it stands, if creditors vote in favour of the scheme, they would relinquish their rights to pursue claims.
The court also heard from Transparency Task Force's Alan Pryatt, and scheme creditor George Dickinson, who both laid out
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