Treasury Committee chair Mel Stride is demanding answers from the Financial Conduct Authority over its investigation into Neil Woodford as the disgraced manager riles investors with his return to fund management.
Stride urged the City watchdog to set out a timescale for publishing its findings on the collapse of Woodford’s Equity Income fund which it has been looking into for the past 18 months.
Woodford revealed last weekend plans to launch a Jersey-based biotech fund under a new business, Woodford Capital Management Partners.
His latest venture will be targeted at institutional investors only but will invest in many of the same illiquid holdings that led to the downfall of his former fund.
Stride said news of his latest venture “may understandably be of concern to investors who previously lost out”.
“The previous Treasury Committee was vocal in its concerns regarding the failure of the Woodford fund and the impact on its investors,” Stride said in a statement.
“As the FCA’s investigation still continues over 18 months after the fund was suspended, the reports of the new fund may understandably be of concern to investors who previously lost out.
“The FCA should set out when we can expect its investigation to conclude.”
Treasury committee will consider letter calling for independent investigation
The FCA broke its silence on Woodford’s comeback late on Tuesday evening stating that he would need to apply for permission before commencing any activity in the UK and vowing to work with Jersey Financial Services Commission to share information on any applications made in their respective jurisdictions.
But its delayed response, nearly three days after the fact, prompted criticism from commentators who accused it of being “on the back foot” once again.
See also: FCA accused of being ‘on the back foot’ in response to Woodford comeback
Following the radio silence from the FCA earlier in the week, SCM Direct and True & Fair Campaign co-founders Gina and Alan Miller penned a letter to the Treasury Committee, asking it to launch an independent investigation into the Woodford scandal.
Stride said the committee “will consider this letter fully when Parliament returns next week”.
