FCA opens investigation into Woodford suspension as two breaches revealed

Two breaches of 10% limit last year

clock • 6 min read

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...

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 Regulation

FCA's SDR regulation will 'make advisers sit up and listen'

FCA's SDR regulation will 'make advisers sit up and listen'

‘There has to be a fundamental re-educating of the adviser community’

Isabel Baxter
clock 30 November 2023 • 4 min read
Advice/guidance boundary review will help 'bridge advice gap'

Advice/guidance boundary review will help 'bridge advice gap'

The FCA’s latest update leads to mixed reactions from the industry

Sahar Nazir
clock 04 August 2023 • 4 min read
FCA review confirms investment pathways working 'as intended'

FCA review confirms investment pathways working 'as intended'

No changes to initiative but industry called to better support savers

Holly Roach
clock 12 July 2023 • 3 min read