The UK's financial watchdog has escalated its scrutiny of Neil Woodford with a fresh legal salvo, as the FCA seeks an injunction against him over allegations that he is providing unauthorised investment guidance through his new online venture, Woodford Capital. This move comes after an extensive investigation into the collapse of his former flagship fund in 2019, which saw hundreds of thousands of investors lose substantial sums.
The regulator contends that Woodford's actions constitute a breach of the Financial Services and Markets Act 2000, with the FCA now targeting the provision of investment advice by Woodford Capital. This regulated activity requires specific authorisation, which Woodford allegedly lacks, leaving consumers vulnerable to unregulated financial guidance. The regulator's pursuit of an injunction underscores its commitment to upholding stringent rules within the sector, particularly in light of high-profile fund failures that have eroded public trust.
Should the FCA succeed in obtaining an injunction, it would legally bar Woodford from offering investment advice or regulated services without first securing the necessary permissions. This would effectively bring operations at 'Woodford Capital' to a halt and serve as a stark warning about the consequences of operating outside regulatory boundaries.
The case is a timely reminder for UK households and businesses to verify the regulatory status of any individual or organisation providing financial advice. Without proper authorisation, consumers risk exposure to unauthorised advice that carries inherent risks, including limited access to compensation schemes like the Financial Services Compensation Scheme (FSCS) in the event of adverse outcomes.