The Financial Conduct Authority (FCA) has revealed that it has started civil proceedings against Neil Woodford and his firm W4.0.
Last year, the disgraced former star manager launched his W4.0 product in June, purporting to be a subscription-based service offering access to investment strategies and ideas created by Woodford.
This drew the regulators’ ire, who now allege that Woodford is providing regulated investment advice and making financial promotions without authorisation in direct violation of sections 19 and 21 of the FSMA.
See also: Woodford portfolio platform to launch this week
Ben Yearsley, director at Fairview Investing, said: “To me, he’s just providing market views and not a lot else on his regular podcasts and emails, and those are interesting and informative.
“Now I don’t know what you’re getting from the paid service, but I’d be amazed if he didn’t have a compliance officer warning him if he was getting close to the line on providing advice,” he told Portfolio Adviser.
Darius McDermott, managing director at Chelsea Financial Services, added: “Having worked in the industry for 40 years, Neil and his colleagues should have realised this counted as financial promotion and it was unlikely, given the scrutiny he is under, that this would be overlooked.”
