The FCA has launched a formal investigation into the suspension of the LF Woodford Equity Income fund, as it also revealed the fund twice breached the 10% exposure to unquoted holdings limit in February last year.
In an open letter penned by Financial Conduct Authority (FCA) chief executive Andrew Bailey, in response to Treasury committee chair Nicky Morgan, confirmed the regulator had been in regular contact with Woodford Investment Management's (WIM) authorised fund manager Link Fund Solutions regarding issues since early 2018. It also said the regulator had opened a formal investigation but would not be able to comment further. Bailey's letter revealed the FCA first initiated contact with Link Fund Solutions in February 2018 regarding the issues to related to liquidity risks. "In February...
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