Asset and wealth management consultancy Alpha FMC has hired the former head of compliance at Neil Woodford’s investment boutique, Portfolio Adviser has learned.
Chris Martin joined the company back in February as a senior manager in the risk, regulation and compliance team, one month after leaving Woodford Investment Management.
Martin was one of a dozen staff members who stayed on at the business after Woodford announced he would be shutting up shop in October less than 24 hours after Link Fund Solutions pulled the plug on the Woodford Equity Income fund which had gated due to severe liquidity issues.
He had been the head of compliance at the boutique since July 2017.
A spokesperson for Alpha FMC confirmed Martin’s appointment which they added hadn’t been more widely announced due to the fact he was joining as a senior manager.
The investment management consultancy has alerted the press when it has hired senior managers previously, including Bradley Northrop and Patrick Dennien who joined its wealth management team from EY last August. It similarly flagged benchmark expert Emma Haffenden joining as a senior manager last June.
“Chris has extensive experience in compliance roles, notably four years at the FCA, and in investment management firms,” the spokesperson said.
“In his previous roles, Chris has dealt with a number of challenging situations and we believe he will bring invaluable insight and experience to Alpha, helping our asset and wealth management clients address a broad range of regulatory and compliance issues.”
Woodford Equity Income blow-up shines spotlight on risk and compliance issues
The implosion of the Woodford Equity Income fund has shone a spotlight on compliance and risk shortcomings at the firm.
By 2018 redemptions from the fund began gathering pace and several of the eponymous manager’s stock picks had turned sour, pushing the level of his unquoted stocks higher and prompting the fund’s authorised corporate director Link to notify the Financial Conduct Authority. Woodford Equity Income breached the Ucits 10% limit on unquoted companies twice in February and March that year.
Months before the fund suspended on 3 June 2019 Woodford attempted to list a trio of stocks on the Guernsey stock exchange in a bid to lower his unquoted exposure which critics, including the FCA, said veered from the spirit of the rules.
Portfolio Adviser understands the day-to-day risk and liquidity management responsibilities fell to Woodford’s head of risk Henry Tabe. Tabe left the firm in September and has since set up his own consultancy business, Thoth Investment Management Consulting.
Martin initially joined Woodford Investment Management in November 2016, where he spent nine months leading several “major regulatory and business change projects,” according to his Linkedin profile, including assisting the firm with its implementation of Mifid II, market abuse regulation (MAR) and a new internal audit framework.
He took over as head of compliance in July 2017 from Simon Osborne who exited the business after less than three years. Woodford’s original chief legal and compliance Gray Smith lasted less than a year in the role, resigning in December 2014 alongside chief operating officer Nick Hamilton who had worked with Woodford and his business partner Craig Newman at Invesco.
Martin worked as a lead associate at the FCA from December 2009 to October 2013 and then worked for The Consulting Consortium as a senior regulatory consultant and associate director.
Portfolio Adviser revealed in April that ex-Woodford manager and investment director Paul Lamacraft had joined Schroders to help on the former Woodford Patient Capital trust.
