The UK's Financial Conduct Authority (FCA) has released an update on the Link Fund Solutions (LFS) Arrangement Scheme.。

The court has decided to approve the plan。If the judge's ruling is not appealed, LFS expects to begin making payments to plan creditors as soon as possible.。Investors voted overwhelmingly for the plan。The minority investors' representations were fully considered by the judge, who disagreed with them。

In April 2023, Link Fund Solutions (LFS) agreed to pay investors in LF Woodford Equity Income Fund (WEIF) a sum of up to approximately 2.A huge compensation of £3.5bn, to which its ultimate parent, Link Administration Holdings (Link Group), will also make a significant contribution。

LFS, as an Authorized Corporate Director (ACD) of WEIF, has made mistakes in managing the liquidity of the fund, thus causing losses to WEIF's more than 300,000 investors.。

The agreement is subject to the sale of Link Group's Fund Solutions business (including LFS's business and Link Group's other additional assets) to Waystone Group (Waystone), and arrangements to resolve all of LFS's liabilities related to WEIF are subject to investor and court approval.。

Up to 2.The £3.5bn compensation includes LFS's assets (cash, capital resources and potential insurance gains), as well as the proceeds from the sale of the Link Group Fund Solutions business.。