FCA Fines, Bans Woodford Over Fund Collapse

The UK Financial Conduct Authority (FCA) has provisionally fined former fund manager Neil Woodford £5.89 million and his firm, Woodford Investment Management, £40 million for mismanagement leading to the collapse of the Woodford Equity Income Fund in 2019. Woodford has been banned from senior management roles and from managing funds for retail investors. The FCA found that Woodford and his company made unreasonable investment decisions and failed to manage the fund’s liquidity, putting at risk the money of around 300,000 investors. At its peak, the fund managed over £10 billion but collapsed after excessive investments in illiquid assets, leaving many unable to access their money. Both Woodford and his firm are appealing the decision to the Upper Tribunal. The FCA's sanctions follow the earlier establishment of a £230 million redress scheme for affected investors and mark the first formal action taken directly against Woodford.