Woodford investors to share £235m compensation payment

The Financial Conduct Authority said Link Fund Solutions had made ‘critical mistakes’ in how it managed the Woodford Equity Income Fund.

Neil Woodford’s fund was paused in 2019 (Woodford Investment Management/PA) (PA Media)

About 300,000 investors who lost out when Neil Woodford’s investment fund started to unravel are set to be paid compensation of up to £235 million from the fund’s administrator after a deal with the City watchdog.

The Financial Conduct Authority (FCA) said that Link Fund Solutions (LFS) had made “critical mistakes and errors” in how it managed the Woodford Equity Income Fund (WEIF).

As a result investors lost about £298 million when the fund entered difficulties, the FCA said.