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Written question asked by Lord Myners (Crossbench) on Thursday, 24 October 2019, in the House of Lords. It was due for an answer on Thursday, 7 November 2019. It was answered by Earl of Courtown (Conservative) on Monday, 4 November 2019 on behalf of the Treasury.

Financial Services

Question

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.

Answer

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.

Secondary information

Type
Written question
Reference
HL410
Session
2019-19
Subjects
Investment Financial services Protection Regulation Reviews Financial Conduct Authority Woodford Investment Management Link Financial Solutions
Link
View this Written question on www.parliament.uk