Link Fund Solutions, the authorised corporate director for the failed Woodford Income Equity Fund, is expected to go into liquidation towards the end of 2025.
The company’s annual report and financial statements for the 18 months to December 2023 has set out that the company has net liabilities of £64.2mn with no commercial business or assets to make profits.
Since October 2023, the company has sold its assets and business and now has just one employee, who acts as the authorised corporate director for Woodford Equity Income Fund and LF Arch Cru funds.
The company effectively ceased trading on October 9, 2023 with the intention of liquidation. Its focus, according to the annual report, was on "satisfying the conditions of the scheme and the orderly realisation of the LFEIF [the former Woodford fund] and LF Arch Cru funds".
The report, filed to Companies House in September, was signed off by director Nigel Boyling in June 2024.
The report said: “The current anticipated timeline for placing the company into liquidation is for the process to commence towards the end of the calendar year 2025, though the directors will keep this under review while ensuring that all remaining assets of the company are, after allowing for required business activities, held solely for the benefit of the scheme creditors.”
Background
Before taking on responsibilities for the WEIF, under the former name of Capita Financial Managers, Link received a public censure in November 2012.
This was for breaching regulatory rules between June 2006 and March 2009 in connection with failures in its oversight, as ACD, of the CF Arch Cru Investment Funds and the CF Arch Cru Diversified Funds, according to a final notice issued in April 2024.
In April 2023, Link reached a conditional agreement with the FCA to settle enforcement action against the company for its role in relation to the Woodford fund.
A scheme of arrangement was set up which provides for up to £230mn to be paid to creditors.
This is made up of a sale of assets to Waystone for £80mn and a contribution from Link Group of £60mn, the company’s net assets of £41mn and insurance proceeds of £48mn.
In March 2024 ,the company made an initial payment of more than £185.7mn.
In April, the Financial Conduct Authority proposed action against Neil Woodford and Woodford Investment Management. In a statement at the time, the FCA criticised Link Fund Solutions for failing to act with "due skill, care and diligence"
A final notice issued to Link by the FCA said it failed to manage how easily assets in the fund could be turned into cash - so investors could access their money at short notice.
tara.o'connor@ft.com
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