Money: Neil Woodford under pressure from City watchdog over fund fees - - PressFrom - United Kingdom
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MoneyNeil Woodford under pressure from City watchdog over fund fees

11:50  11 june  2019
11:50  11 june  2019 Source:   msn.com

Neil Woodford seeks to reassure investors after fund suspension

Neil Woodford seeks to reassure investors after fund suspension Redemptions from the fund were reported to have hit £10 million a day. The stock market guru insisted that his firm, Woodford Investment Management, has a strategy in place to stabilise the fund so holders would eventually be able to access their investments. It has been claimed major investors in the fund were given no prior warning that they would be banned from withdrawing their cash. Kent County Council, which attempted to withdraw £263 million invested in the Equity Income Fund, said it asked the company for its cash on Monday but within hours bosses suspended all withdrawals.

Image caption Neil Woodford apologised to investors earlier this week for suspending his flagship fund . The UK's financial regulator "should have Lord Myners, who was City Minister during the global financial crisis, said the FCA were "like the people in white suits on Line of Duty - the scene of crime

Image caption Neil Woodford apologised to investors earlier this week for suspending his flagship fund . The UK's financial regulator "should have Lord Myners, who was City Minister during the global financial crisis, said the FCA were "like the people in white suits on Line of Duty - the scene of crime

Neil Woodford under pressure from City watchdog over fund fees © Woodford Investment Management Neil Woodford (Woodford Investment Management/YouTube)

The boss of Britain’s City watchdog has joined calls for under-pressure investment guru Neil Woodford to waive management fees for his suspended fund.

Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said Mr Woodford should “consider his position” on charging fees.

It comes after Nicky Morgan, MP and chairwoman of the Treasury Select Committee, urged Woodford Investment Management to waive fees on its equity income fund, which blocked investors from taking their money out last week.

Woodford in scramble to raise cash after devastating week

Woodford in scramble to raise cash after devastating week Neil Woodford’s wounded fund management empire has sold or transferred close to £600m of stock since the suspension of its flagship £3.7bn fund on Monday, as the one-time star UK stockpicker scrambles to raise cash. Signs that Mr Woodford is unwinding his long-held stock positions will heighten fears of a fire sale of assets in the funds, which have already weighed on share prices of companies across the portfolio as scrutiny intensifies of his firm’s recent conduct.

The City watchdog is under fire for failing to spot warning signs of the growing crisis at Neil Woodford 's fund management empire. Woodford blocked savers from accessing money they have in his flagship fund on Monday, in a bid to stop investors rushing to the exit.

The Woodford Equity Income Fund , managed by Neil Woodford , stopped investors cashing out this week. In spite of the suspension of a fund it promoted On Monday, Hargreaves Lansdown dropped the Woodford fund off its favourite list. On Wednesday, it bowed to pressure to drop its platform fee

Neil Woodford under pressure from City watchdog over fund fees © Getty Conservative Party MP Nicky Morgan talks during an interview in the temporary media centre set up opposite the Houses of Parliament in London on March 13, 2019. - British MPs will vote Wednesday on whether the country should leave the EU without a deal in just over two weeks, after overwhelmingly rejecting a draft divorce agreement. The House of Commons is expected to vote against a 'no deal' Brexit, although this could still happen on March 29 unless it can agree on what should happen instead. (Photo by Isabel Infantes / AFP) (Photo credit should read ISABEL INFANTES/AFP/Getty Images)

The City heavyweight suspended the fund “to protect investors’ interests” after they withdrew around £560 million from it over the previous four weeks.

Neil Woodford firm ‘pleased’ with progress despite investor uproar

Neil Woodford firm ‘pleased’ with progress despite investor uproar Last week, Mr Woodford stopped people taking their money out of the Woodford Equity Income Fund. The City heavyweight suffered a nightmare week after suspending the fund “to protect investors’ interests” after they withdrew around £560 million from it over the previous four weeks. Woodford Patient Capital Trust has said it believes it “continues to have the potential to deliver attractive returns”, despite the subsequent slump in share value. Susan Searle, chairwoman of Woodford Patient Capital Trust, said: “The board is closely monitoring the situation and is engaging with its shareholders and advisers.

The Woodford Equity Income Fund , managed by Neil Woodford , stopped investors cashing out this week. In spite of the suspension of a fund it promoted On Monday, Hargreaves Lansdown dropped the Woodford fund off its favourite list. On Wednesday, it bowed to pressure to drop its platform fee

“The Woodford fund points to a potential problem with the limits on illiquid assets: the purpose of these limits is to ensure that the fund remains liquid. The FCA has come in for criticism from politicians and City grandees such as Lord Myners for being slow to react to the unfolding deterioration at Mr

Mr Bailey told BBC Radio 4’s Today programme: “I agree with what Nicky Morgan said – I think he should consider very seriously, I think she used the word ‘gesture’ – use what word you like, he should consider his position.

“However, from our point of view, we need him to manage these assets more than ever because his job now is to get this fund back into a position where there can be orderly trading.

“So he has his work cut out now.”

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Neil Woodford under pressure from City watchdog over fund fees

The frozen Woodford Equity Income Fund is the company’s largest, with a reported value of £3.7 billion, but this is down heavily on the £6.8 billion recorded a year ago.

Last Wednesday, it emerged that the FCA was demanding answers from Mr Woodford and his brokers over their decision to invest so heavily in unlisted companies based offshore in Guernsey.

There was no suggestion of wrongdoing at Woodford Investment Management, the watchdog said, but officials want to understand the chain of events leading to the suspension.

Woodford rejects calls to waive fees for suspended fund

Woodford rejects calls to waive fees for suspended fund Woodford rejects calls to waive fees for suspended fund

Former UK City minister Paul Myners has heavily criticised the Financial Conduct Authority for failing to act on warning signs that Neil Woodford ’s investment empire was running into trouble. She added that Mr Woodford should waive the fund ’s fees while investor redemptions have been suspended.

Funds under management increased by 24 per cent to £16.3billion during the period, and have Woodford -backed tech investor replaces boss. Technology investor Allied Minds has replaced its The head of the City watchdog faces a grilling from MPs over the crisis at Neil Woodford 's fund

But there have also been questions over why the FCA failed to step in earlier, with former City minister Lord Myners claiming the watchdog missed “clear warning signs”.

Ms Morgan also said on Monday she had written to Mr Bailey to ask for more information on the suspension and its supervisory contact with the Woodford fund.

Over the weekend, Hargreaves Lansdown chief executive Chris Hill apologised to investors after the company’s clients found their money trapped in Mr Woodford’s funds.

Hargreaves Lansdown has seen its shares steeply decline over the past week amid continued pressure on Mr Woodford’s fund, with the stock down another 2% on Tuesday.

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'Does anyone at the FCA read the newspapers?' MPs slam City watchdog for failing to probe Woodford - as FCA chief admits the fund that locked in investors had bent the rules.
Nicky Morgan, chair of the TSC, pointed out to FCA boss Andrew Bailey that concerns over Woodford's Guernsey dealings were aired in a March article by Citywire. She said: 'Does anybody at the FCA read the newspapers and listen to what's going on in the industry?' © Provided by Associated Newspapers Limited FCA chief Andrew Bailey © Provided by Associated Newspapers Limited MP Nicky Morgan Mr Bailey, who has been widely touted as the likely successor to Mark Carney as Governor of the Bank of England, admitted the article triggered the FCA's interest in the potential 'regulatory arbitrage' - the shifting aroun

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