Tue, 25 Mar 2025

Tue, 25 Mar 2025 'I could lose £100K despite Woodford redress scheme'

People who lost savings from a collapsed investment fund say a redress scheme has let them down.

* Around 300,000 people lost money when the fund collapsed in 2019.
* The FCA's "redress scheme" offered investors a payout of around 77p in the pound, but some claim this figure was misleading and locked them out of other consumer protections.
* Ian Duffield and his wife Linda from Manchester invested £234,000 into the fund and received just £7,600 under the redress scheme, leaving them with a loss of nearly £100,000.
* Investors say they trusted the FSCS protection offered by the fund, but were unaware that accepting the redress scheme would mean giving up access to this protection.
* A group of MPs and peers is calling for an investigation into how the FCA handled the fund's collapse and set up the redress scheme.
* The APPG report will claim that only a small minority of investors understood the nuances of the redress scheme, and that the FCA failed to properly communicate its terms.
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