Hyperlink Fund Options has agreed with the UK monetary regulator to pay as much as £235mn to buyers who suffered from the collapse of Neil Woodford’s Fairness Earnings fund.
The Monetary Conduct Authority mentioned the redress bundle will cowl the losses of greater than 300,000 buyers who had cash within the fund when it was frozen in 2019.
Hyperlink Fund Options, Woodford’s fund administrator, will present the compensation with “a fabric contribution” from its mum or dad group, Australian firm Hyperlink Group.
The settlement is topic to the completion of a sale of Hyperlink Fund Options to rival firm Waystone Group.
“The FCA’s investigation raised critical considerations about Hyperlink Fund Options’ administration of the liquidity of the Woodford Fairness Earnings Fund,” mentioned Therese Chambers, govt director of enforcement and market oversight on the FCA. “LFS’s actions seem to have prompted important losses for these buyers who remained within the fund when it was suspended.”