Hyperlink Fund Options Restricted (LFSL) says it expects to start making funds underneath a £230m redress scheme to Woodford buyers within the first quarter of 2024.
The transfer signifies that as much as 300,000 buyers within the defunct Woodford Fairness Earnings Fund ought to begin to get compensation from the redress fund by early subsequent 12 months.
Buyers have been ready for 5 years for the redress scheme after the fund failed in 2019.
Hyperlink, the authorised company director of Woodford funds, confirmed the small print this week in a letter to buyers within the LF Fairness Earnings Fund (previously the Woodford Fairness Earnings Fund).
If the scheme goes forward, Hyperlink estimates that the whole quantity of the Settlement Fund can be as much as £230 million.
It says the primary distribution from the Settlement Fund, estimated to be between £180 million and £200 million, is anticipated to be paid as quickly as the primary quarter of 2024.
A spokesperson for Hyperlink mentioned: “Launching the scheme is a constructive step ahead in settling claims and reaching a place the place buyers within the fund on the level of suspension can obtain funds.
“The aim of the settlement with the FCA is to attract the matter to a detailed for these buyers as effectively as potential, and we consider the scheme is the perfect final result out there given all of LFSL’s (Hyperlink Fund Options) out there property can be put into the Settlement Fund, and Hyperlink Group can even make a voluntary contribution of as much as £60 million that won’t be made if the scheme doesn’t turn out to be efficient. Hyperlink Group can also be voluntarily contributing as much as £2.5 million to the prices of the Scheme.
“As we transfer via the method, we’ve got requested brokers and platforms cross on updates to buyers, and updates can even be offered on our web site at https://lfwoodfordfundscheme.com/. Our focus can be on offering buyers with entry to info to assist them perceive the scheme particulars and type their view forward of a vote.”
Ryan Hughes, AJ Bell head of funding partnerships, mentioned: “Buyers can be happy to see additional particulars concerning the redress scheme on the Woodford Fairness Earnings fund which units out the potential quantity out there for distribution and the timeframe round this.
“This is a vital subsequent step for buyers seeking to be compensated for the failure of the fund, with c£230m being earmarked as out there for buyers who held the fund on the level of suspension on 3 June 2019.”
Mr Hughes mentioned the deal represented “gentle on the finish of the tunnel for buyers.”
The compensation will rely on the sale of the Hyperlink Fund Options enterprise and the approval of the scheme by buyers.
Buyers can be given a vote on the proposed scheme.