MPs urge FCA to set date for Woodford investigation end
The Treasury Committee has urged the Financial Conduct Authority (FCA) to set out when it expects to conclude its lengthy investigation into the collapse of Neil Woodford’s fund.
The City regulator has been investigating the situation regarding the gating and subsequent collapse of the Woodford Equity Income Fund since 2019, a process that has so far taken more than 18 months.
MPs have now urged the regulator to give clarity on when it expects it might be finished with its investigation, as Woodford last weekend announced plans to open a new fund.
Treasury Committee chair Mel Stride said: “The previous Treasury Committee was vocal in its concerns regarding the failure of the Woodford Fund and the impact on its investors.
“As the FCA’s investigation still continues over 18 months after the fund was suspended, the reports of the new fund may understandably be of concern to investors who previously lost out.
“The FCA should set out when we can expect its investigation to conclude. In the meantime, it’s important to note Mr Steward’s comments reiterating some of the factors that the FCA will consider when taking a decision to authorise a new firm, along with the co-operation that has been agreed between the FCA and the Jersey Financial Services Commission.”
A FCA spokesperson said it would update MPs by 31 May, adding: “We appreciate the Treasury Committee’s interest in these issues.”
In a highly unusual move, earlier this week the FCA released a late-night statement that said Woodford’s comeback was subject to securing regulatory permission.
“In taking any decision on whether to authorise a firm, we consider whether it is ready, willing and organised to comply, on a continuing basis, with our requirements and standards. That includes, for example, the sustainability of the firm’s business model and the fitness of its management,” the FCA’s director of enforcement and market oversight Mark Steward said.
The FCA said it was in contact with Jersey’s financial services watchdog over the proposed new firm.
Last weekend the veteran fund manager apologised for the collapse of his investment company, and announced plans to launch a new biotech focused outfit in Jersey and Buckinghamshire.
Some investors who lost money as a result of the collapse of Woodford’s first investment business, Woodford Investment Management, have still not got their money back.