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The city watchdog has warned that the action against Neil Woodford may not be resolved until 2026 or later, seven years after the collapse of his investment empire.
The Financial Conduct Authority (FCA) has been preparing a case that could result in a fine or city ban for the stock picker.
But yesterday, a senior FCA executive said a conclusion could be a long way off. Some 300,000 savers had £3.7bn trapped in the fund closed by regulators in 2019.
Legal threat: The Financial Conduct Authority has been preparing a case into the collapse of the Woodford fund, which could result in a fine or city ban for the stock picker (pictured)
In April, the FCA said it was preparing action against Woodford and Woodford Investment Management.
They can now “put forward their side of the story and try to persuade the regulatory decisions committee that there is no basis for formal action”, said Therese Chambers, co-head of compliance at the FCA.
‘That may take some time. The current average it takes the committee to deal with matters is 11 months. Complex cases take much longer.’
The FCA will then decide whether the rules have been broken and whether punishment is required. But if you do, a challenge could be filed.
A law firm representing Woodford has said the FCA’s conclusions were “fundamentally flawed” and would be challenged.
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