Neil Woodford is told by watchdog that his new company must seek approval before operating in the UK

Disgraced fund boss warned over his comeback: Neil Woodford is told by finance watchdog that his new company must seek approval before operating in the UK

  • Neil Woodford announced he is preparing to launch a Jersey-based fund
  • Up to 500,000 were affected when Woodford’s previous business failed in 2019
  • Events leading up to the collapse are being investigated by City regulators
  • The Financial Conduct Authority said his new firm WCM Partners would need to seek approval before carrying out any business in the UK 

The City watchdog finally broke its silence last night on Neil Woodford’s plans to return to the investment industry.

The Financial Conduct Authority said his new firm, WCM Partners, would need to seek approval before carrying out any business in the UK.

And in a stark warning to the disgraced investment chief, it said would take into account ‘the fitness of management’. 

This could spell trouble for Mr Woodford who has faced a backlash after the collapse of his empire in 2019 left hundreds of thousands of savers nursing heavy losses.

The FCA, which is investigating the scandal, said last night it was in talks with the regulator in Jersey, where Mr Woodford is planning to base the new firm.

The 60-year-old revealed his comeback plans last weekend, announcing in a tearful interview with the Sunday Telegraph that he was ‘sorry’ for his past performance but that he did not want his career to be over.

Neil Woodford (pictured) revealed his comeback plans last weekend, announcing in a tearful interview with the Sunday Telegraph that he was ‘sorry’ for his past performance but that he did not want his career to be over [File photo]

The once-star fund manager fell to earth in 2019 when Woodford Investment Management imploded – triggering losses of more than £1billion for British savers. 

In a statement last night, Mark Steward, the FCA’s director of enforcement, said: ‘Mr Woodford’s new business, WCM Partners Ltd, would need to apply for appropriate permissions before commencing any regulated activity in the UK.

In a statement last night, Mark Steward (pictured), the FCA's director of enforcement, said: 'Mr Woodford's new business, WCM Partners Ltd, would need to apply for appropriate permissions before commencing any regulated activity in the UK

In a statement last night, Mark Steward (pictured), the FCA’s director of enforcement, said: ‘Mr Woodford’s new business, WCM Partners Ltd, would need to apply for appropriate permissions before commencing any regulated activity in the UK

‘In taking any decision on whether to authorise a firm, we consider whether it is ready, willing and organised to comply, on a continuing basis, with our requirements and standards. That includes, for example, the sustainability of the firm’s business model and the fitness of its management.’

The FCA has come under heavy criticism from campaigners and MPs for not concluding its inquiry.

Mr Steward said the investigation was ‘progressing’, but that the pandemic had caused delays in accessing documents and witnesses.

He added: ‘I recognise the time taken to investigate causes frustration among those affected by a firm or fund failure and who are, understandably, looking for answers. They rightly look to us to provide those answers.’

The Woodford Equity Income Fund, which held £3.7billion of savers’ money, was frozen in June 2019 following a run of poor performance.

It has since been wound up, though savers are still waiting for almost £200million of their money to be returned.

They have lost at least £1billion in total since June 2019, on top of any losses they suffered during his years of underperformance before that.

Mr Woodford’s new investment fund will be open to professional investors only.