Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Financial Conduct Authority's redress scheme in relation to the collapse of the Woodford Equity Income Fund.

On 19 April 2023, the FCA published a statement on their investigation into the circumstances leading up to the suspension of the Woodford Equity Income Fund, and the role of Link Fund Solutions. The statement set out a proposed settlement scheme for this investigation, where Link Fund Solutions and Link Group would provide a redress payment of up to approximately £230 million. This scheme would mean investors recovering up to 77p in the pound for the losses attributable to Link Fund Solutions.

The FCA considered that the scheme was the quickest way for investors to obtain a better outcome than might otherwise be achieved. In December 2023, investors voted by an overwhelming margin to endorse the scheme.

On 9 February 2024, the High Court issued a judgment approving the scheme, and the first redress payments of over £185 million were distributed by April 2024.