We’re you affected or do you know somebody who may have been affected by the collapse of Woodford Equity Income Fund (WEIF) which happened in 2019 with thousands of investors suffering significant losses as a result?
Whilst many affected clients wait for an arduous FCA investigation to be concluded, many are unaware that their may be other ways to gain compensation or redress more quickly either via a financial adviser claim or pension claim.
So what happened at Woodford Investment Management (WIM)?
Founded by Neil Woodford in 2014 the circumstances surrounding WIM have become one of most talked about scandals to face financial services in recent years.
The main issues surrounded the ‘Woodford Equity Income Fund (WEIF)’ where Neil Woodford chose to invest the money his clients had invested into WEIF into high risk, illiquid assets primarily in non listed UK companies.
Why is that wrong?
As the fund was presented as a low-risk cautious fund, these types of investments were not suitable for a fund of this nature.
Furthermore, illiquid assets can put a strain on the fund if for any reason a large number of investors choose to make withdrawals.
Non-standard investments into private limited companies which are not listed in a recognised exchange are not subject to the same levels of corporate governance and as such are very difficult to scrutinise or control (meaning your capital is at more risk).
Why not book a call with one of our team here today or call one of our experts on 01618401560.
The Story so far:
- Growing Problems (2017-2018): The fund’s performance deteriorated, and investors began to lose confidence, leading to a wave of withdrawals.
- Fund Suspension (June 2019): To stop further withdrawals and protect the remaining investors, Woodford suspended the fund, meaning investors couldn’t take their money out. This sparked outrage, as many investors were locked into the fund, unable to access their cash.
- Closure of the Fund (October 2019): The decision was made to wind up the Woodford Equity Income Fund. Administrators began selling the fund’s assets to repay investors, though many received much less than their initial investments due to the illiquid nature of the assets Woodford had acquired.
- Woodford’s Resignation and Fund Management Collapse (June 2019): Woodford resigned as the fund’s manager and later announced that Woodford Investment Management would close down. His reputation was severely damaged as thousands of investors, including pensioners, lost significant amounts of money.
- Post-Collapse Investigations: The Financial Conduct Authority (FCA) began investigating the events leading to the collapse. There have also been lawsuits filed by investors against firms that recommended Woodford’s fund, and Woodford himself was scrutinised for his management decisions.
As a result of these developments, investors were prevented from being able to withdraw any of their funds, which resulted in billions of pounds being lost.
So, how can you go about making a claim to recovery monies invested with Woodford Investment Management?
- Submit a claim to the Financial Services Compensation Scheme (FSCS)
As a regulated firm it is likely that the FSCS will be compensating clients for up to £85,000 of losses against Woodford however this will take some time and may not cover the full losses that your may have suffered. - Claim against a financial adviser
There is nothing to confirm that advisers who recommended WIF are guilty of any wring doing however given the number of funds and options available to investors it is likely that a claim again a financial adviser could be upheld.Dependent on the circumstances, claims against financial advisers can be brought directly, via the Financial Ombusdman Service (FOS) and if required through the courts.
- Claim against the Pension Provider or Platform
Some platforms and pensions providers (including the like of Hargreaves Lansdown) who facilitated the investments into Woodford could be found negligent in relation to their due diligence and oversight of Woodford which may also present grounds for complaint.
Knowing how best to navigate a claim isn’t always easy, even for us!
This is why we begin by gathering all the evidence on your behalf by writing to all your providers.
Once we have the information we need we can assess your actual losses, provide a free valuation of your
Claim and advise you on the best course of action to get the maximum compensation or redress in the most efficient way possible.
Why not book a call with one of our team here today or call one of our experts on 01618401560.
Investors will not only be entitled to claim against any and all loses they personally experienced as a direct result of WEIF collapsing, but also for the loss of opportunity suffered as a result of missing out on other investments that may have yielded higher returns.
Hargreaves Lansdown Platform
Anyone who invested in WEIF either directly through the Hargreaves Lansdown platform or via Hargreaves Lansdown Multi Manager Fund is also entitled to compensation. Similarly, those investors that put money into the company via the Authorised Corporate Director (ACD) Link Fund Solution may also be entitled to claim compensation.
Contact Us Today
For anyone who believes that they have a valid claim against WEIF and are entitled to compensation, regardless of the amount, and want to know more, then Book a free call with our specialist.
There is no cost or financial risk in pursuing legal action against WEIF. Your legal costs will be paid on your behalf and should your claim not be successful, any legal costs incurred will be covered and will not be payable by you. Contact us – 0161 840 1560
