Fund supervisor Neil Woodford and his firm Woodford Funding Administration are to problem the FCA’s findings on the administration of liquidity for the Woodford Fairness Revenue Fund, in keeping with their legal professionals.
The regulator’s findings issued right this moment in a warning discover have been, “unprecedented and basically misconceived”, in keeping with an announcement from authorized corporations WilmerHale and BCLP.
The regulator mentioned that Mr Woodford had a “faulty and unreasonably slim understanding” of his obligations for managing liquidity dangers.
It additionally mentioned that he and Woodford Funding Administration failed to make sure that the Woodford Fairness Revenue Fund’s liquidity danger framework was acceptable, to reply appropriately to the continued deterioration within the fund’s liquidity and to take care of an affordable liquidity profile for the fund.
WilmerHale and BCLP mentioned Mr Woodford and his agency will problem the FCA’s findings, claiming that the one criticisms of Mr Woodford involved the fund’s liquidity framework which was the duty of fund administrator Hyperlink Fund Options.
The assertion additionally claimed that Woodford Funding Administration and Neil Woodford weren’t given any prior warning in regards to the fund’s suspension.
The warning notices usually are not the FCA’s ultimate choices. Earlier than making a ultimate choice, Mr Woodford and Woodford Funding Administration have the correct to make representations to the FCA’s Regulatory Selections Committee.
The FCA has but to specify what, if any, regulatory motion it is going to take towards Mr Woodford and Woodford Funding Administration ought to its ultimate choice rule towards Woodford.
The FCA mentioned it could element its proposed sanctions and its full findings public “at an acceptable level.”
These invested within the Woodford Fairness Revenue Fund when it was suspended are beginning to obtain a share of a £230m redress scheme funded by the authorised company director of Hyperlink Fund Options, which was permitted by the Excessive Courtroom in February.
Traders have been ready for 5 years for the redress scheme after the fund was suspended following excessive outflows in 2019.
The FCA initially calculated the losses arising from failures in liquidity administration to remaining buyers as being as much as roughly £306m.
