On 21 September 2022, UK FCA gave an update on its proposed enforcement action against Link Fund Solutions Ltd (LFS), following September 12 Link Group announcement to ASX.

• Link Group statement confirmed FCA issued LFS with a draft warning notice.
• Warning notice gives recipient an opportunity to resolve the case by agreement.
• The draft warning notice is not a final decision; Link has 14 days to respond.
• Unless it chooses to resolve the case by agreement within that period, LFS will have an opportunity to challenge the FCA’s findings and the enforcement action proposed.
• Draft warning notice proposed a penalty of £50mn, before prompt settlement discount.
• Notice also set out basis for redress payment LFS may have to pay, of up to £306mn.
• Potential redress figure reflects FCA's current view of LFS's failings in managing the liquidity of the WEIF, but does not reflect any amount which may be owed to others.
• FCA is aware of the potential takeover of Link Group by Dye and Durham (D&D).
• Proposed takeover involves acquisition of 7 firms, including LFS, authorized by UK FCA.
• D&D is required to obtain UK FCA approval to take control of these firms.
• UK FCA is focused on ensuring the right funding is in place so affected consumers are able to access as much redress as possible; there are multiple parties under investigation in relation to the circumstances that led to the suspension of the WEIF.