Woodford deal requires 'careful thought' from investors

investmentweek.co.uk:

The practice statement letter noted the FSCS had yet to make a determination regarding any potential compensation

Yesterday (7 September), investors received a practice statement letter from Link Fund Solutions, offering a timeline and further detail on the deal first brought to public attention in April of this year.

Darius McDermott, managing director at Chelsea Financial Services, described it as «the best deal investors will get», adding «there is a reason why the FCA has backed it», while Jason Hollands, managing director of Bestinvest, said while it will not leave investors «feeling pleased…it is the only credible way forward».

Woodford investors set for early 2024 payout if scheme passes

Ryan Hughes, head of investment partnerships at AJ Bell, praised the «hugely patient» investors who have suffered through a «long, drawn out process», but added that, if approved, the deal marks a «light at the end of the tunnel».

However, while Dzmitry Lipski, head of funds research at interactive investor, said the offer brought by LFS «deserves attention», he added that investors must approach the vote with «careful thought», as a positive vote would «settle any claims that investors may have against [LFS] for its role as authorised corporate director».

Alongside this concern, Daniel Kerrigan, partner at Harcus Parker, raised the lack of clarity surrounding whether compensation from the Financial Services Compensation Scheme would be available or not.

The practice statement letter noted the FSCS had yet to make a determination regarding any potential compensation and also suggested that if investors vote for the scheme, it would likely prevent investors pursuing any claims with the FSCS.

Kerrigan argued: "‘It seems to me that