Treasury Committee urges FCA to determine when Woodford probe will conclude
Rt Hon. Mel Stride MP, Chair of the Treasury Committee, today commented on the reports that Neil Woodford is to set up a new investment firm.
Mel Stride noted that the previous Treasury Committee was vocal in its concerns regarding the failure of the Woodford Fund and the impact on its investors.
He referred to the recent statement by the Financial Conduct Authority (FCA) on Neil Woodford’s future business plans.
Let’s note that, since April 2020, Woodford Investment Management Ltd has no longer been able to offer investment services to retail clients. The FCA is currently investigating the events that led to the suspension of the LF Woodford Equity Income Fund. The regulator has confirmed its investigation is being appropriately resourced and is progressing.
Mel Stride said:
“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.
Mel Stride noted the FCA’s comments reiterating some of the factors that the regulator 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.
Mr Woodford’s new business, WCM Partners Ltd, would need to apply for appropriate permissions before commencing any regulated activity in the UK. In taking any decision on whether to authorise a firm, the FCA will consider whether it is ready, willing and organised to comply, on a continuing basis, with the necessary requirements and standards. That includes, for example, the sustainability of the firm’s business model and the fitness of its management.