The regulator made a short update today, following an announcement by Link Group to the Australian Securities Exchange.

The FCA said it is focused on ensuring that consumers affected by the suspension of the Woodford Equity Income Fund (WEIF) obtain redress. 

To assist a potential resolution, the FCA said it has provided time for Link Group to realise assets, including Link Group held assets, to meet the FCA’s concerns. 

The update followed news that the Australian-based Link Administration is looking to sell Link Fund Solutions to Dublin-based fund manager Waystone Group.

Link said it is in exclusive negotiations to sell its UK Fund Solutions division to the Dublin Group.

Link said it would receive no net proceeds from the sale, and warned of an upcoming A$449m (£372.6m) non-cash impairment charge in its half-yearly results due to LFS.

LFS has also been credited with the collapse of a proposed deal last year for Link to be bought by Canadian group Dye & Durham, which was planning to a £2bn takeover of the group until concerns about liabilities arose.

The FCA said: “We have previously set out that any redress figure would be based on our view of LFS's failings in managing the liquidity of the WEIF.”

It said it knows that investors affected by the Woodford scandal will be keen to understand what impact the news may have on them, including how any proposed scheme of arrangement would work.

It added: “We will provide a further update as soon as we are able to.”

Ryan Hughes, head of investment partnerships at AJ Bell, said: “Investors in the former Woodford fund will be grateful that progress seems to be happening."

However, he pointed out that there is still no timescale on the potential agreement and even if agreed, it will still be some time before investors receive any redress as the process and structure of any such payments will need to be determined.

Mr Hughes added: "Nearly four years has now passed since the suspension shocked investors and with parts of the portfolio still not liquidated, investors will rightly feel that this debacle has dragged on long enough."

LFS managed the LF Woodford Equity Income Fund until its collapse in June 2019. Star stock-picker Neil Woodford had picked assets for the £3.7bn fund but restricted withdrawals after a plunge in value.

Last September the FCA issued Link with a £50m fine warning over the Woodford affair.

Then it said any redress payments Link could be required to pay could be up to £306m.

The FCA said the potential redress figure would reflect its view of Link’s failings in managing the LF Woodford Equity Income Fund.

FCA-determined redress is based on misconduct rather than any losses caused by fluctuations in market value or price of investments.