Woodford Claims Update – FCA Concludes Investigations into Neil Woodford, however a meaningful Resolution for investors is Still a Long Way Off

Whilst it is understandable that investigations into complex funds like Woodford Equity Income Fund take time, however people looking in, often forget that many investors are in later life and therefore don’t fully realise the implications that the delays in having money tied up can have, particularly when involving peoples pension savings.

This is why we always advise people to seek legal advice as often, with a little investigating on our part, there may well be ways to expedite the process and take back control of your finances.

These can include legal action against other regulated parties who may also have liability as part of your pension or investment into Woodford Investment Management.

To learn more about how you can potentially get access to compensation or redress relating to Woodford or any pension claims, financial adviser claims or investment claims, we offer a free consultation, there’s no obligation on your part, we’re here to guide you and as we work on a no-win no-fee basis, we will never encourage you to pursue something which we don’t think has a reasonable chance of success.

You can read the latest update for Woodford Investment Management below…

The Financial Conduct Authority (FCA) has formally concluded all investigations into Neil Woodford and Woodford Investment Management (WIM), but the end of this prolonged saga remains distant. Speaking at the FCA’s annual meeting on 26 September, Therese Chambers, joint executive director of enforcement and market oversight, confirmed that although the investigation has wrapped up, the road ahead is far from clear.

In April 2024, both Neil Woodford and Woodford Investment Management were served a formal warning notice following the FCA’s conclusion of its investigations. Chambers explained that this notice is a key step, setting out detailed allegations against the subjects of the investigation, backed by evidence. This comes after the parties involved are given an opportunity to engage with the regulator and potentially accept the FCA’s findings to reach a settlement. However, if no settlement is reached, the case moves to the FCA’s regulatory decisions committee, which has the power to issue the formal warning notice.

The warning notice essentially outlines the allegations and initiates the statutory process for the FCA to take formal action. Chambers further explained that both Woodford and Woodford IM now have a legal right to present their side of the story to the committee, aiming to persuade the regulator that there is no valid basis for formal action.

The process of making representations, however, is not a quick one. Currently, it takes the committee about 11 months, on average, to deal with such matters, though more complex cases, like that of Woodford, may take considerably longer. Following this period, the committee will determine whether to issue a decision notice, which would signify the formal conclusion of the FCA’s action on this case.

Even then, it’s not necessarily the end of the story. If a decision notice is issued, Woodford and WIM have the right to challenge the findings in the upper tribunal. Chambers warned that this could result in an even longer process, often taking over a year for matters to be fully resolved. As a result, the complete resolution of the Woodford case could drag on for another 12 to 18 months—meaning investors who have been waiting for answers since the suspension of the LF Woodford Equity Income fund in 2019 will likely have to wait much longer.

This prolonged situation continues to frustrate investors who are looking for closure. With the possibility of further legal proceedings and tribunals, the Woodford saga is expected to carry on well into the future, keeping many stakeholders in limbo. For those impacted, the option of filing a financial advisor claim may be a course worth considering to recover their losses during this drawn-out process.

If you’ve suffered financially due to poor advice or investment mismanagement, HT Legal is here to help. We have the expertise to pursue compensation for those affected by cases like the Woodford saga. Our team knows how to hold financial firms and regulators accountable for their failures.

Book a free consultation today with one of our claim specialists.