The Financial Conduct Authority (FCA) may need to review existing rules governing fund management, amid warnings that "investors will see the value of their investment plummet" as a result of the Woodford Equity Income fund's suspension of dealing, legal experts have said.
Professional Adviser's sister publication Investment Week reported recently that Woodford Investment Management could face legal action from investors as a result of its decision to suspend dealing while trading of the fund's assets continues. Partner at law firm Howard Kennedy James Kaufmann explained this decision means "investors could see the value of their investment plummet but not be able to withdraw while the suspension remains in place", opening up the possibility of legal questions about the gating. He added: "This can lead investors to challenge the application, timing, va...
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