An MP has raised “serious concerns” about the performance of the Financial Conduct Authority in relation to the Woodford scandal.
Bob Blackman, co-chair of the Investment Fraud and Fairer Financial Services APPG, said the regulator took too long to conclude matters.
Last week, the regulator issued a warning notice against Neil Woodford, the manager of the Woodford Equity Income Fund which was suspended in 2019.
Blackman said: "There have been serious concerns about the performance of the FCA in relation to its handling of the Woodford Scandal, including the length of time it is taking to conclude matters.
“This latest development is merely one of many issues that have caused parliamentarians and Woodford victims to be concerned about whether the FCA is willing and able to provide an appropriate degree of consumer protection, as tasked by parliament to do so.
“The general pattern the APPG has seen, in this and several other alleged regulatory failure cases, is that the FCA does too little, too late, and is far too opaque.”
On April 11, the FCA said Neil Woodford had a “defective and unreasonably narrow” understanding of his responsibilities for managing his fund.
It issued a warning notice statement to Neil Woodford and Woodford Investment Management. It confirmed there were no other parties under investigation in relation to the fund.
The notice read: “The FCA considers that during the relevant period (July 31, 2018 to June 3, 2019) Mr Woodford held a defective and unreasonably narrow understanding of his responsibilities for managing [Woodford Equity Income's] liquidity risks.”
It added he failed to ensure the fund had an appropriate liquidity profile.
The warning notices given to Woodford and his firm are not the FCA's final decisions and the regulator said any final decision would be made public.
The FCA was contacted for comment.
The Investment Fraud and Fairer Financial Services APPG was previously known as the Fairer Financial Services APPG.
Back in November, Blackman and other MPs drafted a letter to the Treasury calling for a review into the “poor handling” by the FCA of the Woodford scandal.
It called on the Treasury to explain "why so many Woodford investors feel terribly let down by the FCA, and what could now be done to help ensure Woodford investors are finally treated fairly and justly”.
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
