Woodford fines announced – but no further redress for WEIF investors.

Six years after the suspension of the Woodford Equity Income Fund (WEIF) trapped 300,000 investors, and following more than five years of investigation, on 5th August 2025 the Financial Conduct Authority (FCA) finally announced its decision to fine Neil Woodford and his firm, Woodford Investment Management (WIM).  

The FCA has issued fines of £5.88 million to Neil Woodford and £40 million to WIM. Both have referred the decision to the Upper Tribunal, meaning the fines have no immediate effect and may not be paid for some time, if at all. The latest action raises more questions than it answers about the regulator’s handling of this national scandal. 

Whilst any sanction is welcome, these fines are a textbook case of ‘too little, far too late’. Worse, the regulatory action offers no further compensation for investors despite the FCA’s acknowledgement that they have suffered greater financial harm than the paltry redress paid [last year] by Link Financial Services Limited (LFSL).   

The FCA estimates that WEIF investors at the point of fund suspension (3rd June 2019) were harmed in the amount of £289 million (excluding forgone earnings), but the LFSL scheme of arrangement (which the FCA approved) will only return between £186 million and £230 million, leaving an acknowledged shortfall of between £59 million and £103 million. That’s a significant failure of the UK’s redress system. 

This outcome is a token slap on the wrist for the fund’s managers. Woodford and his partner Craig Newman took tens of millions of pounds in fees and dividends from their firm, yet the personal fine amounts to a tiny fraction of that. No one has faced criminal charges for the losses inflicted upon ordinary people.  

Delayed justice is bad justice. The FCA’s glacial pace has caused frustration and has failed to address demonstrable harm. Had the regulator acted decisively years ago, investors would not have had to rely on ShareSoc standing up for them, nor felt compelled to sign up for group litigation claims (most of which were eventually upended by the FCA brokered LFSL scheme of arrangement). The regulator’s anaemic actions have prolonged and increased the emotional stress of victims. 

Key Shortcomings Arising from the latest FCA Announcement: 

• No further compensation for investors: To the extent they are upheld, the fines will not go to the victims but will instead be trousered by the Treasury. The FCA has confirmed that this action brings no further redress for WEIF investors, leaving the Link scheme of arrangement as their only (paltry) compensation. 

• Will the fines be paid? WIM is effectively a dormant company with no net assets. It is unclear if it holds any insurance that might cover the £40m fine. Likewise, will Mr Woodford pay his £5.88m fine personally, or will a Directors & Officers (D&O) insurance policy, paid for with investor-generated fees, pick up the tab? 

• Why no restitution order? The FCA has powers to order firms and individuals to pay restitution to those who have suffered loss. Why was this power not used against Woodford and WIM? In the event that WIM had insufficient assets, the Financial Services Compensation Scheme (FSCS) would be called on to make up the shortfall. It seems the FCA may again have chosen to protect the FSCS (and indirectly the financial services industry) at the expense of the demonstrably harmed consumer. Conflict, what conflict?! 

• Hargreaves Lansdown’s role: The FCA’s findings state that Woodford and WIM “did not react appropriately as the fund’s value declined, its liquidity worsened and more investors withdrew their money.” Hargreaves Lansdown continued to feature the fund on its Wealth 50 list until the very end, but appears to have avoided FCA scrutiny. The ongoing RGL claim against HL is now the only game in town. 

Other Developments  

The Woodford scandal continues to attract much press comment. Since our last update, there has been a notable increase in pressure on the regulator itself.  

In March 2025, the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services wrote to the Treasury Committee calling for a full inquiry into the FCA’s handling of the Woodford scandal. The group alleged that the regulator failed to act on clear warning signs and that its actions in relation to the Link settlement were misleading. 

The Campaign Continues 

ShareSoc’s campaign objectives have been clear from the start: to facilitate communication, help investors recover losses, hold those responsible to account, and drive regulatory change. 

ShareSoc has consistently pressured the FCA to act decisively and in the interests of affected investors. The regulators actions to date, while inadequate, are testament to the importance of our campaign and the power of the collective voice of investors.  

The latest fines mark a partial victory in our battle to hold those responsible to account, with Link, Neil Woodford, and WIM all now having faced regulatory sanctions or voluntary restitution. But it is far from the end of the road, with the appeals against these fines yet to be heard and the RGL litigation claim against Hargreaves Lansdown ongoing. 

The lack of further redress to investors is shameful. Justice will not be fully served until all relevant parties have been properly and transparently examined. This includes Hargreaves Lansdown. 

ShareSoc continues to endorse the RGL claim against Hargreaves Lansdown, which is now the only remaining route for Woodford investors to recover more of their losses. Sadly, this has now closed to further claimants. We will continue to fight for investors and campaign for a regulatory system that protects consumers, rather than one that takes half a decade to act while victims’ life savings are decimated. 

For more information about ShareSoc’s Woodford Campaign click here.