Neil Woodford’s fund administrator is going through a possible £50 million further high-quality, the UK monetary regulator has confirmed.
The Monetary Conduct Authority (FCA) mentioned on Wednesday that Australia’s Hyperlink Administration may face the penalty along with £306.1 million in redress funds over its administration of a now shut-down fund.
Hyperlink’s UK-based operation Hyperlink Fund Options (LFS) ltd managed LF Woodford Fairness Revenue Fund till its collapse in June 2019.
Star stock-picker Neil Woodford had picked property for the £3.7 billion fund however restricted withdrawals after a plunge in worth.
The FCA mentioned it's investigating LFS’s dealing with of the fund and has given Hyperlink 14 days to reply to its draft discover.
In assertion, the FCA mentioned: “The FCA’s precedence is to guard shoppers and the integrity of the UK monetary system.
“With the investigation into LFS full, it's proper to progress it by issuing a draft Warning Discover.
“The FCA is concentrated on making certain that the proper funding is in place so affected shoppers are capable of entry as a lot redress as doable.”
The probe has forged uncertainty over Hyperlink’s nine-month takeover talks with Canadian agency Dye & Durham.
Dye & Durham has already lower its supply to purchase Hyperlink by round a fifth from an agreed value of 1.95 billion Australian dollars (£1.15 billion).