Wednesday 10 July 2019 6:25 pm

Woodford lifts block on investors switching from Hargreaves Lansdown

Investors who found themselves locked into both Neil Woodford’s suspended fund and Hargreaves Lansdown will now be able to switch to a different stockbroker.

Thousands of customers were left stranded after Link Fund Solutions, the authorised fund manager, blocked transfers from Hargreaves Lansdown to other platforms. 

Read more: Woodford investors blocked from switching from Hargreaves Lansdown

Woodford customers are also unable to withdraw their savings from the Equity Income fund, which was suspended last month after a spike in withdrawals.

But Link and Woodford today confirmed the block has been lifted, meaning customers can transfer between platforms across all share classes. Hargreaves Lansdown customers have £1.6bn tied up in the stricken fund.

It comes after Richard Wilson, chief executive of rival fund shop Interactive Investor, branded the block on transfers “unacceptable”.

In a letter to Treasury Select Committee chair Nicky Morgan he wrote that the decision had “no sound rationale or practical operational basis”.

However, City A.M. understands discussions to remove the block were underway before the letter was sent.

Laura Suter, analyst at rival investment platform AJ Bell, said: “Investors are understandably frustrated about being stuck in the Woodford fund, but at least this move means that they can transfer their money to another platform, rather than having the whole process held up by the fund suspension.

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“At such a stressful time for investors, this should help to ease at least some of their frustrations.”

A spokesperson for Hargreaves Lansdown said: “We’re pleased that Woodford and Link have finally agreed to our numerous requests to allow investors to transfer all WEI share classes between platforms.”

Main image credit: Getty