FCA reports substantial progress of LF Woodford Equity Income Fund investigation
Nikhil Rathi, Chief Executive of the UK Financial Conduct Authority (FCA) today sent a letter to the Treasury Committee to provide it with with an update on the FCA’s investigation into the circumstances relating to the suspension of the LF Woodford Equity Income Fund.
The investigation has made substantial progress, the FCA says. To date the regulator has conducted 14 witness interviews, with all key interviews now having been completed. The investigation team has also issued over 30 information requirements which has led to the gathering of over 20, 000 items of relevant material from all the key parties.
Information gathering in relation to current lines of enquiries is, accordingly, nearly complete. Further steps will involve further analysis of this information and engagement with experts, including individuals who are able to give expert evidence in any potential proceedings.
“Our disciplinary powers, as set out in legislation, are extensive including the ability to impose financial penalties, secure redress, suspend a firm for up to 12 months from undertaking specific regulated activities, and prohibit someone from operating in financial services”, the FCA CEO explains.
In the face of the request by the Treasury Committee to be more precise about the deadlines for the conclusion of the probe, Nikhil Rathi said he is unable to give a precise timeline for any public indication of the outcome.
Nikhil Rathi noted that Woodford Investment Management Limited does not currently hold any permissions from the FCA that would enable it to engage in retail investment activities. The FCA remains in close supervisory contact with the firm and will continue to engage with authorities in overseas jurisdictions about any potential future activities of the firm or its principals.