From Morningstar: 2024-04-11 07:20:00

Former star manager Neil Woodford received a warning notice from the FCA for mismanagement of the Woodford Equity Income Fund. The FCA criticized Link Fund Solutions for not handling the fund properly. Woodford’s strategy lacked adequate liquidity management, resulting in the fund’s dramatic failure in 2019.

Woodford can appeal the FCA’s decision after making representations to the regulatory decisions committee. Previously, retail investors in the fund were compensated with 185.7 million pounds. Litigation from private investors is ongoing. Woodford Investment Management closed in 2019 due to a liquidity crisis caused by mass redemptions.

Neil Woodford, a former Invesco fund manager, launched his business in 2014 to find contrarian investments. However, the collapse of his flagship strategies in 2019 led to widespread criticisms of mismanagement. The FCA was also scrutinized for being unaware of the severity of the situation until it was reported in the news.



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