FCA sues Neil Woodford over alleged unauthorised investment advice
12 reported
The UK Financial Conduct Authority has initiated civil proceedings against former investment manager Neil Woodford and a UAE-registered company, W4.0, alleging they are providing regulated investment advice without authorisation through a subscription-based platform. The FCA is seeking an injunction to stop what it describes as potentially unlawful activities. This legal action comes a year after the regulator announced plans to ban Woodford from the City following the 2019 collapse of his equity fund, which was worth over £10bn at its peak. The FCA alleges that Woodford and W4.0 are making financial promotions via the website www.w4pz.com without proper authorisation. Woodford and his investment management company have stated they plan to challenge the FCA’s fine and ban in the upper tribunal, though a hearing date has not been set. The FCA’s penalties will not formally apply until after the tribunal hearing. The Guardian was unable to immediately reach Woodford for comment.
What’s reported
The FCA has started civil proceedings against Neil Woodford and W4.0, a UAE-registered company.
The FCA alleges Woodford and W4.0 are providing regulated investment advice and making financial promotions through www.w4pz.com without authorisation.
The FCA is seeking an injunction to stop the alleged potentially unlawful activities.
The legal action follows the FCA’s announcement last year that it would ban Woodford from senior manager roles and managing funds for retail investors.
Woodford’s equity fund collapsed in 2019 after being worth over £10bn at its peak.
The fund’s suspension and collapse were due to poorly performing investments and holdings in private unlisted companies.
Woodford resigned in mid-October 2019 and closed his investment company.
The FCA issued a decision last summer banning Woodford and fining him and his company a total of £46m.
Woodford and his company plan to challenge the fine and ban in the upper tribunal; no hearing date has been set.
The FCA’s penalties will not formally apply until after the tribunal hearing.
Woodford launched a subscription-based investment service called W4.0.
The parent company of W4.0, W Four Point Zero FZE LLC, is registered in the United Arab Emirates.
Key figures
Neil Woodford, former investment manager
Financial Conduct Authority (FCA), UK financial regulator
W4.0, UAE-registered company
W Four Point Zero FZE LLC, parent company of W4.0
Link Fund Solutions, company in charge of the fund’s liquidity (mentioned in context of blame)
Sources: The Guardian
