Investors trapped in the failed Woodford Equity Income fund have been told to lobby politicians as some express dissatisfaction at the proposed compensation scheme.
The Transparency Taskforce discussed the ‘Woodford saga’ and the proposed compensation scheme in a recent online meeting.
The group has set up the Woodford Campaign Group, which is made up of around 700 Woodford investors.
It came after voting on a £230mn compensation scheme for investors trapped in the fund was launched last week.
Link Fund Solutions, the administrator of the fund once run by Neil Woodford, opened the voting following an order by Mrs Justice Bacon in the High Court on October 13.
At the meeting, the Transparency Taskforce urged investors to write to their MPs to see if they would support their case.
The group believes investors rights are being “forcibly removed” through the proposed compensation scheme as it would mean, if approved, they will not be able to seek help through the FSCS.
One investor at the meeting, Neil Taylor, said he would not be voting for the proposed ‘scheme of arrangement’.
He added: “To be honest, [the proposed compensation scheme] is miles out of what it should be. That's my view of it and I think others will feel the same
“I'm sure if they look at the numbers and understand them [they will see] it is not a good deal.”
Andy Agathangelou, the Transparency Taskforce's founder, encouraged those affected by the scandal to add their testimony to a call for evidence about the FCA by the personal banking and fairer financial service all party parliamentary group of MPs, of which the taskforce is secretariat of.
He said: “This is all powerful stuff. It's all effectively collateral we can use to help win the hearts and minds in a very, very important court called the court of public opinion.”
A meeting to vote on the scheme of arrangement, court-approved agreement between a company, shareholders, and creditors, will take place on December 13 and those affected have until December 4 to register to vote.
The result is expected to be announced by December 15 and requires the support of 75 per cent by value, and a majority in number, of the scheme creditors.
A spokesperson for Link Fund Solutions said: “This is another important step forward in the process of ensuring investors in the fund at the point of its suspension (and their successors and transferees) can receive payments, much sooner and with more certainty than under any alternative arrangements.
“LFS believes that the terms of the scheme, if implemented, will materially enhance the amount of redress available to scheme creditors from LFS, in comparison to the position had LFS not entered into a settlement with the FCA, and the scheme had not been proposed.”
The settlement fund would be up to £230mn and comprises all of LFS’s assets as well as a £60mn voluntary contribution from the firm’s parent company which is funded by the proceeds from the sale of LFS (without the Woodford liability) to Dublin-based Waystone Group.
