The Jersey Financial Service Commission (JSFC) has expressed disappointment about the reports of Neil Woodford’s latest investment venture Woodford Capital Management (WCM) Partners.
This is because the firm has not applied for authorisation in Jersey or in the UK.
The JSFC said: “We note that WCM Partners has publicly announced in a press release that it plans to operate as an investment management company out of Jersey and Buckinghamshire.
“We are disappointed to see this announcement in advance of either receiving or processing any application from this company for authorisation to conduct licensed business as an investment management firm in Jersey.
“It would be normal practice, when making such an announcement, to make it clear that it is ‘subject to regulatory approval’.
“We wish to advise that, although the trading name ‘WCM Partners’ has been reserved in the Jersey Registry, no application has been received or processed to authorise WCM Partners to operate as a Jersey company or an authorised investment management firm in Jersey.”
Woodford’s Jersey comeback
Woodford’s business collapsed in 2019 after his flagship Woodford Equity Income fund was unable to cope with mass redemptions due to severe liquidity issues stemming from its investment in risky, unlisted start-ups.
Investors are still trapped in the fund, with some being hit with losses of around 50%.
See also: Neil Woodford becomes the man who could halve a £1,000 investment
But on 14 February 2021, Woodford revealed he had set up another company, based in Jersey and Buckinghamshire, targeting the very same niche, high risk and illiquid assets that turned out to be so problematic the first time around.
It seems, however, that the fund manager’s latest venture won’t be made available to retail investors.
On 17 February 2021, the Financial Conduct Authority revealed it was in talks with the Jersey regulator on any future applications made by Woodford or his newly launched company, for either a fund or an entity.
The regulator has been slammed this week for dragging its feet on its investigation into the collapse of Woodford’s fund, with True & Fair Campaign co-founders Gina and Alan Miller calling for an independent investigation into the matter.
For more on international financial planning, please visit www.international-adviser.com
