'Just wrong': Woodford demise sparks difficult questions for regulators

Experts warn of lengthy delays in investors recouping losses

clock • 5 min read

The closure of the Woodford Equity Income fund (WEIF) could leave investors waiting for their money for "years", with the affair likely to have ramifications for the authorised corporate director (ACD) market and regulators' future approach to fund liquidity standards, according to industry commentators.

WEIF's closure, which subsequently led to the demise of Woodford Investment Management (IM), has left investors continuing to pay fees to BlackRock Advisors and Park Hill, while the firms unwind the fund's £3bn in AUM in efforts to return client capital. Regulatory manager at FE Mikkel Bates warned it "could take months, even years" for investors to see their capital fully returned.  He explained investors are likely to see some capital more quickly from the sale of the fund's liquid assets, but the fund's illiquid assets - to which it has high exposure - will take much longer t...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Infrastructure: A good investment gone bad – and then good again?

Infrastructure: A good investment gone bad – and then good again?

'Infrastructure - a victim of a unique set of circumstances'

Darius McDermott
clock 02 May 2024 • 5 min read
Investment opportunities 'differ by client age group'

Investment opportunities 'differ by client age group'

‘Advisers should consider personal circumstances when it comes to investment’

Isabel Baxter
clock 02 May 2024 • 1 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 02 May 2024 • 2 min read