- The Financial Conduct Authority (FCA) has fined former fund manager Neil Woodford and his firm, Woodford Investment Management, for a total of £46 million
- Woodford Investment Management will be hit with a £40 million fine, while Woodford will receive a personal fine of just under £6 million and a ban from senior manager roles and managing funds for retail investors
- This concludes a six-year saga that saw the Woodford Equity Income Fund suspended in 2019, leaving investors unable to access their money
Ryan Hughes, AJ Bell Investments managing director, comments on the FCA’s decision to fine both Neil Woodford and Woodford Investment Management:
“The FCA's damning judgement and substantial fine for Neil Woodford and his firm, Woodford Investment Management, offer a measure of solace for investors ensnared in the debacle that began over six years ago with the dramatic suspension of the Woodford Equity Income Fund.
“The judgement lays bare a series of issues, highlighting Woodford’s failure to accept responsibility for managing the fund’s liquidity. As the fund faced outflows, Woodford exacerbated its poor liquidity by selling off more liquid holdings, ultimately leading to the fund’s suspension and eventual winding up over the subsequent years. In addition to a personal fine of nearly £6 million, the FCA has banned Woodford from holding senior manager roles and managing funds for retail investors, effectively ending any hope he had of returning to manage money for retail investors.
“This protracted process, spanning over six years, has seen the implementation of a redress scheme, a multi-year fund wind-up that remains unfinished, fines for multiple parties, and thousands of aggrieved investors who have suffered billions of pounds in losses. The downfall of the former star of UK investment will surely be remembered as one of the most catastrophic episodes in the history of the UK asset management industry.”