
Potential loss of £100K possible due to Woodforth fund compensation scheme blunder. Oh dear!
Woodford redress scheme could cost me £100k despite, Image source, Ian DuffieldImage caption, Ian Duffield and his wife Linda put £234,000 of their pension savings into Neil Woodford's fund
By Helen Catt, Political correspondent, Published on 25 March 2025
Hundreds of thousands of people lost money when the Woodford Equity Income Fund collapsed in 2019, leaving many feeling betrayed by the UK's financial regulator. Investors were promised a redress scheme that would allow them to recover 77p in the pound, but some claim this figure was misleading and has left them out of other consumer protections.
Ian Duffield and his wife Linda, from Manchester, trusted Neil Woodford with their £234,000 pension savings, only to face a substantial loss after the fund collapsed. Despite hopes of reclaiming a significant portion through the redress scheme, Ian was shocked to find that he would only receive £7,600, leaving them with a total loss of nearly £100,000.
Investors like Paul King from Kingston-upon-Thames feel let down by the lack of protection offered by the Financial Conduct Authority. Even after investing nearly £50,000 in the Woodford fund, Paul now finds himself with no recourse for compensation under the scheme.
A group of MPs and peers have called for an inquiry into the FCA's handling of the fund's collapse, criticizing the lack of communication and transparency surrounding the redress scheme. Many investors were not adequately informed about the nuances and intricacies of the scheme, leaving them feeling misled and unprotected.
Despite the approval of the scheme by a High Court judge and the majority of investors, questions remain about the fairness and effectiveness of the redress process. As investors continue to grapple with substantial losses, the fallout from the Woodford scandal raises serious concerns about the regulation of investment funds and the protection of consumer rights.
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Wednesday 26th Mar 2025