Financial Services: Regulation

Treasury written question – answered at on 4 November 2019.

Alert me about debates like this

Photo of Lord Myners Lord Myners Crossbench

To ask Her Majesty's Government whether they will (1) establish an independent review into the Financial Conduct Authority's supervision of Woodford Investment Management and Link Financial Solutions, and (2) review the protections in place for investors in open-ended funds in circumstances similar to those managed by Woodford.

Photo of The Earl of Courtown The Earl of Courtown Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)

The government takes the suspension and winding up of the Woodford Equity Income Fund (WEIF) very seriously and is monitoring the response. The Financial Conduct Authority (FCA) is continuing its investigation into the activities that led to the suspension of the WEIF. At this stage, the government has not seen evidence that would justify establishing an independent review into the FCA’s supervision of the fund.

As part of its investigation, the FCA is considering what FCA rule changes may be necessary to protect investors and to prevent similar issues in future. The FCA is also working with the Bank of England’s Financial Policy Committee to assess how funds’ redemption terms might be better aligned with the liquidity of their assets. Once the FCA publishes its findings, we will be able to assess whether there is any further role for the government.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.