Australia-based Link Administration (Link Group) has announced that it is in advanced discussions with UK Financial Conduct Authority (FCA) to settle a probe against its now-collapsed Woodford Equity Income Fund (WEIF).
The firm’s UK-based Link Fund Solutions (LFSL), which operated the fund, is also involved in the discussions.
Besides, Link Group is in talks with Dublin-based Waystone Group to sell its entire Fund Solutions (FS) Business (FS Business), except the liabilities associated with WEIF.
The sale will require completion of due diligence and conclusion of detailed legal agreements as well as board and other approvals.
Waystone has received an additional period of exclusivity until the end of March 2023 to finalise the required legal agreements.
In a statement, Link Group said: “The likely outcome of the sale to Waystone and of settlement with the FCA, if both are concluded, is that Link Group would receive no net proceeds of the sale of its FS business.
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“If a settlement is agreed with the FCA, it would resolve the current FCA investigation and would also be contingent on a scheme of arrangement of LFSL to resolve all Woodford related contingent liabilities and redress obligations of LFSL.”
In October last year, Link Group was reportedly mulling to divest LFS and even selected Macquarie Capital and Ubs Securities Australia as its advisers in the matter.