The manager of Neil Woodford’s collapsed investment fund said it is prepared to challenge a regulatory ruling in the courts today as it looks to sidestep a potential £306m bill over its role in the scandal.
The Financial Conduct Authority yesterday warned Link Fund Solutions, which managed the £3bn Woodford Equity Income Trust when it collapsed in 2019 and left investors millions of pounds out of pocket, that it could be forced to pay hefty redress and compensation payments over its failure to properly manage the liquidity of the fund.
But the Aussie firm has pushed back against the comments and said that while the FCA’s announcement is not a final, it is prepared to challenge any potential decision.
“LFSL will explore all options, including challenging any Warning Notice that may be issued at the Regulatory Decisions Committee and further through the Upper Tribunal, as LFSL does not agree with the FCA’s view,” its parent company Link Group said in a statement.
The FCA’s announcement was prompted by a takeover swoop from Canadian software firm Dye & Durham last year which now requires the go-ahead of the regulator.
Any deal is facing a major speed bump after the FCA warned yesterday that potential buyer would have to foot the bill for Link if it does not have the required assets.
In a statement to the Toronto Stock Exchange on Monday, the software firm said that Link had disclosed no provision set aside to cover the liabilities of the deal, meaning that it could fall to Dye & Durham to cover the £306m in order to proceed with the takeover.
The Canadian Software giant said on Monday it is “assessing the impact of the proposed condition on the proposed acquisition of Link Group” and is in active discussions with Link Group to find a way forward.