The Financial Conduct Authority (FCA) has started legal proceedings against former investment star Neil Woodford and his company W4.0 for allegedly providing unauthorised investment advice. The regulator is seeking an injunction to stop what it describes as 'potentially unlawful activities' through the subscription-based platform www.w4pz.com.
The action comes a year after the FCA announced plans to ban Woodford from holding senior roles in the City following the collapse of his flagship equity fund in 2019. The fund, once worth over £10bn, was suspended after a series of poor investments in companies such as Purplebricks, Burford Capital, and Provident Financial, combined with holdings in hard-to-sell private firms.
Woodford resigned in October 2019 and closed his investment company. Administrators later wound down the fund, returning money to 30,000 investors at a steep loss. Last summer, the FCA fined Woodford and his firm a total of £46m and banned him from the industry, stating he was 'not a fit and proper person' due to lack of competence and reputation.
Both Woodford and his former firm plan to challenge the fine and ban in the upper tribunal. Meanwhile, Woodford launched W4.0, a subscription service offering investment strategies. The FCA said it is engaging with Woodford to ensure his activities do not require authorisation, warning that breaking the law could lead to further action.
