Link shares rise after settlement vote
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More news: Shares in financial technology group Link were up 6% in early ASX trading on Friday after maligned UK investors voted to accept a settlement.
Investors who lost money in the improperly run LF Equity Income Fund this week voted to accept a £298 million ($568 million) settlement.
UK investors approve $568m Link Group settlement
The news: Financial technology provider Link Group is a step closer to paying £298 million ($568 million) to investors who lost money in a poorly run fund.
The investors this week voted to accept a compensation agreement called the Link Fund Solutions Limited scheme. A court in January will determine whether to sanction the scheme.
The context: In 2019, the UK Financial Conduct Authority found Link Fund Solutions Limited (LFSL) had failed its obligations in running the LF Equity Income Fund (earlier known as the LF Woodford Equity Income Fund).
The watchdog uncovered that LFSL failed to properly supervise the investment manager of the fund. It also found an unreasonable liquidity profile and metrics used to measure it.
Many investors suffered financial loss after they were left with a disproportionate amount of less liquid assets.
What they said: "This scheme represents the best way for most people to get money back. Any other routes are highly uncertain, would take much longer and be unlikely to deliver anywhere near the levels of redress being suggested elsewhere.
The scheme does not prevent people making claims against third parties in relation to the failure of the fund," the UK Financial Conduct Authority said in a statement last month.
The sources: Link Group, UK Financial Conduct Authority
