Ann: Update on Link Fund Solutions, page-7

The announcement doesn't spell out a clear set of reasons why the Board is going down this track. So it leaves us to try and reason or guess what they are. It merely adds a comment about the UKFCA actions, which is old news. Why the urgency, how about letting the dust settle?

Running any business is about judgements around the fiscal Risk/Reward equation. Clearly, what Link FS has historically earned, and can feasibly earn under current arrangements, does not compensate the company enough for the degree/scale of Risks that can emerge (the Woodford experience being a prime example). Given the potential draw on Insurers that we hope cover current and possible Class Actions and other Compensation claims, we can also expect future insurance premiums to rocket higher. That makes getting an economic return even harder.

My opinion is that Link Admin should be running a steady, somewhat boring, array or businesses with a regular return to shareholders, year in, year out.

Instead there seems to be one drama or radical change proposal after another. Meanwhile, value destruction has occurred.