Link Fund Solutions Ltd, Re [2023] EWHC 2641 (Ch) (12 October 2023)

Link Fund Solutions Ltd, Re [2023] EWHC 2641 (Ch) (12 October 2023)

The differences between private and institutional investors (different causes of action and potential FSCS recourse) are not differences in legal rights against LFSL or under the Scheme, but are private interests or rights against third parties. All Scheme Creditors are treated the same under the Scheme and in...

Source-derived case information.

Citation
[2023] EWHC 2641 (Ch)
Parties
Applicant: Link Fund Solutions Limited; Respondent/supporter: Financial Conduct Authority; Neutral/advisor: Investor Advocate (Joe Bannister); Objectors/claimants: Claiming Investors (Leigh Day, Harcus Parker Ltd); Investor/objector: Alan Pyatt; Investor/objector: Graham Dickenson; Investor/objector: Mark Bishop; Investor/objector: Andy Agathangelou
Jurisdiction
England and Wales
Judgment Date
12 October 2023
Procedural Posture
Scheme of Arrangement (companies Act 2006, Part 26) / Application for Order to Convene Creditors' Meeting
Outcome
Application granted
Legal Topics
Scheme of Arrangement, Class Composition of Creditors, Investor Claims, FSCS Compensation, FCA Regulatory Action
Insolvency Law Company Law Financial Regulation Scheme of Arrangement Class Composition of Creditors Investor Claims FSCS Compensation FCA Regulatory Action

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 12
Sign in to unlock

Parties

Link Fund Solutions Limited

Applicant

Financial Conduct Authority

Respondent/supporter

Investor Advocate (Joe Bannister)

Neutral/advisor

Claiming Investors (Leigh Day, Harcus Parker Ltd)

Objectors/claimants

Alan Pyatt

Investor/objector

Graham Dickenson

Investor/objector

Mark Bishop

Investor/objector

Andy Agathangelou

Investor/objector

Procedural Posture

Scheme of Arrangement (companies Act 2006, Part 26) / Application for Order to Convene Creditors' Meeting

Legal Issues

  1. 1 Whether a single class of creditors is appropriate for the scheme meeting or if separate classes (private vs institutional investors) are required
  2. 2 Whether differences in rights or interests between private and institutional investors justify separate classes

Ratio Decidendi

The differences between private and institutional investors (different causes of action and potential FSCS recourse) are not differences in legal rights against LFSL or under the Scheme, but are private interests or rights against third parties. All Scheme Creditors are treated the same under the Scheme and in insolvency. Therefore, a single class meeting is appropriate.

Court Disposition

Application granted

Orders

  • A single class meeting of Scheme Creditors is to be convened to consider and vote on the Scheme.