#enterprise Hargreaves Lansdown faces legal fight over collapse of Woodford fund
Hargreaves Lansdown faces legal fight over collapse of Neil Woodford’s flagship fund
Savers who misplaced £1billion when Neil Woodford’s flagship fund collapsed will quickly have the prospect to pursue Hargreaves Lansdown for damages.
Thousands who ploughed cash into the Woodford Equity Income Fund (WEIF) have been pondering methods to claw again their misplaced money.
Now regulation agency RGL Management is getting ready to file a declare inside weeks in opposition to funding platform Hargreaves Lansdown and Link, which was alleged to supervise Woodford’s administration of his funds, the Daily Mail understands.
Failed fund: Neil Woodford (pictured) noticed his flagship Woodford Equity Income Fund frozen after a flood of buyers tried to tug their cash out
The lawsuit comes as stress on events concerned within the Woodford scandal is starting to develop.
The Financial Conduct Authority (FCA) confirmed this week it was ‘likely’ to pressure Australia-listed Link to pay a £306million penalty to WEIF buyers.
This is the primary time that the FCA has hinted it should penalise corporations over the Woodford scandal, and stated it was nonetheless open to ordering ‘other parties’ to pay the redress to prospects.
But in a transfer more likely to infuriate Woodford victims, Link stated yesterday it will contemplate difficult the regulator’s high-quality by means of the courts if crucial.
The FCA’s probe into Woodford’s downfall has additionally been inspecting the position of Hargreaves Lansdown, which really helpful WEIF to buyers proper up till the fund’s suspension in June 2019, and Woodford himself.
The FCA declined to touch upon whether or not both of these events could be penalised.
Hargreaves Lansdown has denied any wrongdoing.
WEIF was frozen by Link after a flood of buyers tried to tug their cash out, following a run of poor efficiency.