MPs have drafted a letter to the Treasury calling for a review into the “poor handling” by the FCA of the Woodford scandal.
Bob Blackman, chair of the all-party parliamentary group on personal banking and fairer financial services, is expected to send a letter to Bim Afolami, economic secretary to the Treasury.
The group is now calling on people to become co-signatories of the letter and say more than 300 supporters have signed up so far.
It is set to call on Afolami to “explain to the City minister why so many Woodford investors feel terribly let down by the FCA, and what could now be done to help ensure Woodford investors are finally treated fairly and justly”.
It said possible outcomes could include a debate in parliament, and/or an independent inquiry about the Woodford scandal.
The invitation to become a co-signatory said: “[The Woodford scandal] has shocked so many people's confidence in the regulatory framework that is supposed to protect consumer interests; and a scandal that is causing many people to question the performance and perhaps even the integrity of the Financial Conduct Authority."
It comes as a vote on a proposed £230mn compensation scheme for investors trapped fund approaches.
If approved, the settlement fund would be up to £230mn and is expected to distribute between £183.5mn and £200mn in the first quarter of 2024.
A meeting to vote on the proposed scheme will take place on December 13 online and those affected have until December 4 to register to vote.
An FCA spokesperson said: “The proposed redress reflects the loss caused by LFS’ failure to comply with the FCA’s principles. It does not, nor is it intended to, reflect any losses caused by a deterioration in the performance of the underlying investments in the fund.
“As we have made clear, this redress scheme offers the quickest route for redress for the vast majority of people. Payouts through other means such as litigation or the FSCS are not guaranteed and will likely take longer to achieve.
“We firmly believe that what is being offered by Link warrants serious consideration by investors.”
A result of the compensation scheme vote is expected to be announced by December 15 and requires the support of 75 per cent by value, and a majority in number, of the scheme creditors.
tara.o'connor@ft.com
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