The U.K.’s Financial Conduct Authority (FCA) is seeking an injunction against former fund manager Neil Woodford — who it sanctioned last year — alleging that he’s now violating financial services law by operating a subscription-based website that offers insight on investing strategies.
Last year, the FCA imposed a £46-million fine on Woodford and his firm, Woodford Investment Management, after finding that they violated regulatory principles in their management of an investment fund, Woodford Equity Income Fund, when the fund ran into liquidity issues in 2018.
Those issues led to the fund being suspended in mid-2019, after its value fell from a high of £10.1 billion in May 2017 to £3.6 billion by the time it was suspended.
The FCA also banned Woodford from managing funds for retail investors, and from serving as senior management in the financial industry.
Those decisions are now under appeal to the U.K.’s Upper Tribunal, meaning the FCA’s decisions and sanctions are considered provisional.
On Monday, the FCA said that it’s launching further civil action against Woodford and his new firm, W Four Point Zero FZE LLC (W4.0), alleging that they are now breaching certain provisions of financial services law by, “… providing regulated investment advice and making financial promotions through the subscription-based platform, www.w4pz.com, without authorization.”
“The FCA is seeking an injunction against Mr. Woodford and W4.0 to stop them carrying on the potentially unlawful activities,” the regulator said in a release.
Those allegations have not been proven.
Indeed, on the platform’s site, the firm provides a disclaimer that states that it is explicitly not offering regulated advice.
“We are not regulated by the FCA or any other regulatory body, and we do not provide financial advice. That’s deliberate,” it said.
“If you are looking for advice or for someone to manage your money, W4.0 is not the community for you 🙅🏻♂️.”
Instead, the site said that the firm aims to “… explain active investment strategies — with full transparency — so you can see what’s inside, why it’s there, and the thinking behind it.”