Delayed Accountability by the FCA: ALEX BRUMMER criticizes the lengthy process leading to Woodford's reprimand
Neil Woodford, a prominent figure in the British investment world, has been at the centre of a high-profile legal case involving questionable investment decisions and the suspension of his Equity Income fund. Here's a breakdown of the timeline and the current status of the proceedings.
Timeline
- 2016: Following the Brexit vote, Woodford refocused the Woodford Equity Income fund towards smaller UK companies, particularly in life sciences and technology.
- 2018-2019: Woodford and his firm, Woodford Investment Management, made "unreasonable and inappropriate investment decisions," shifting from more liquid investments to less liquid ones between July 2018 and June 2019.
- June 2019: The Woodford Equity Income fund was suspended, leaving investors unable to access their money due to poor liquidity.
- 2023: The Financial Conduct Authority (FCA) proposed a redress scheme aimed at compensating affected investors with up to £235 million. The scheme was finalized by the end of 2023.
- August 2025: The FCA issued fines totaling £45.9 million (£5.9 million for Neil Woodford and £40 million for Woodford Investment Management) and banned Woodford from managing retail funds and holding senior management roles.
Current Status
- Fines and Bans: Neil Woodford has been fined £5,888,800 and banned from managing retail funds and holding senior management roles. Woodford Investment Management has been fined £40 million.
- Legal Proceedings: Both Woodford and Woodford Investment Management have appealed the FCA’s decision, referring it to the Upper Tribunal. The fines and bans remain provisional pending judicial review.
- Compensation Scheme: A redress scheme to compensate affected investors was finalized in late 2023, with distributions planned for 2024. This scheme cannot fully restore all losses but marks a significant step toward closure for investors.
The case against Woodford continues to unfold, with the Upper Tribunal review pending. The legal proceedings have been a source of concern for many investors, who are eagerly awaiting the outcome and the potential restitution.
- Neil Woodford's investment decisions in property, finance, and wealth-management, primarily through the Woodford Equity Income fund, have been a subject of controversy.
- Despite the fines and bans imposed on Neil Woodford and Woodford Investment Management in August 2025, both parties have chosen to appeal the Financial Conduct Authority’s (FCA) decision.
- The FCA's proposed redress scheme for affected investors could potentially provide compensation of up to £235 million, with distributions planned for 2024.
- The case involving Neil Woodford and Woodford Investment Management’s questionable investing decisions in stocks, personal-finance, and business is ongoing, with the Upper Tribunal review remaining an active process.
