Investors Call for Inquiry as Woodford Redress Scheme Leaves Them Short-Changed

In the wake of the Woodford Equity Income Fund collapse in 2019, around 300,000 investors are expressing dissatisfaction with the Financial Conduct Authority’s (FCA) redress scheme, designed to help them recoup losses. Ian and Linda Duffield, who invested £234,000 of their pension savings, found themselves with a total loss nearing £100,000 after expectations of recovering a significant portion of their funds were dashed. The FCA’s scheme, intended to offer 77p for every pound lost, has been criticized for its misleading nature as it accounts for already recovered assets. Investors like Paul King, who anticipated protection under the Financial Services Compensation Scheme (FSCS), feel betrayed, stating they’d have better consumer rights for a low-cost purchase than they received for substantial investments. In response, the All-Party Parliamentary Group for Investment Fraud is urging a Treasury inquiry into the FCA’s handling of the fund’s collapse and the subsequent redress process, highlighting a fail in clear communication regarding the losses covered by the scheme. The FCA maintains that the redress scheme was the best option for investors, approved by a significant majority but only involving a small subset of total investors.