Woodford management firm ‘let savers down’ by failing to raise alarm earlier, says former City minister
The fund services business which oversaw Neil Woodford’s doomed investment empire is under fire for failing to adequately protect savers.
Link Fund Solutions, which supervised Woodford’s management of his flagship Equity Income fund and smaller Income Focus fund, played a key role in the crisis when it stopped savers withdrawing their money from the funds.
It did so to protect investors, as too many wanted to pull their money out and this would have forced Woodford into a fire sale of assets to raise the cash.
Link Fund Solutions should have shouted much louder on behalf of investors before Woodford’s funds hit crisis point, former City minister Lord Myners said
But former City minister Lord Myners said Link should have shouted much louder on behalf of investors before Woodford’s funds hit crisis point.
He also continued to rake in fees from investors even when they were barred from pulling their money out, collecting a total of £8million during the five months from the suspension of the Equity Income fund to his dismissal in October.
Myners said: ‘As it is at the moment, you only have one voice around the table and that’s the fund manager’s.
‘There’s no one around the table saying ‘Should you keep charging fees?’ That’s what Link should have done.’
Myners blamed the Financial Conduct Authority for putting in place weak rules. He added: ‘I think the FCA is guilty of creating a real missed opportunity.’
Link said it ‘continues to act in full accordance with its legal and regulatory obligations, including maintaining its strictly independent stance.’