This page provides updates on the Settlement Scheme (the Scheme) proposed by Link Fund Solutions Limited (LFS) in relation to the LF Equity Income Fund (WEIF or the Fund). If approved, the Scheme will create a Settlement Fund of up to £230 million for relevant investors that hold shares in the WEIF.
- Scheme Creditors have until 5pm on 4 December 2023 to vote on the Scheme, unless they wish to attend in person to vote, in which case they must request to do so by 5 pm on 30 November 2023. The easiest way to vote is via the online voting portal.
- The Investor Advocate, who has been appointed to represent Scheme Creditors in respect of the Scheme, is available to answer questions (contact [email protected]).
- LFS are also able to answer questions about the Scheme and how to vote (contact [email protected]; or call their dedicated helpline at +44 (0)20 3991 0224).
- The FCA continues to consider that the Scheme offers investors the quickest and best chance to obtain a better outcome than might be achieved by any other means. As such, the FCA strongly encourages investors to consider it.
In April 2023, we announced a conditional settlement of our investigation into the circumstances leading up to the suspension of the WEIF and LFS's role as authorised corporate director (ACD) of the WEIF. As part of the conditional settlement, LFS agreed to pay all of its assets to over 250,000 investors in the WEIF, via the Scheme.
In addition, Link Group, the ultimate parent of LFS, has agreed to voluntarily contribute up to £60 million to bolster the redress. This money would not be available to investors through either separate legal action or any other action we, or anyone else, could take.
The FCA considers the Scheme to be the quickest and best way to return as much money to investors as possible compared to other means.
The Court has ordered LFS to convene a meeting of all affected investors (Scheme Creditors) to consider the Scheme and, if thought fit, approve it. This meeting will be held on 13 December 2023. The deadline for submitting a voting form (and registering to attend the meeting) is 5pm on 4 December 2023. An online voting portal is available on LFS’ dedicated website. This website also contains links to the relevant documents and information regarding the proposed scheme. We have also provided some further information below.
The FCA considers it is in the interests of the investors to be given the opportunity to consider the Scheme. If the proposed redress amount of £230 million is paid in full then investors will have recovered approximately 77p in the pound.