Former British minister of the city lambaste the FCA under the supervision of Woodford

Former British city minister Paul Myners has strongly criticized the Financial Conduct Authority for failing to act on early warning signs that Neil Woodford's investment empire was in trouble.

Lord Myners, a long-time investment executive who served under Prime Minister Gordon Brown in the aftermath of the financial crisis, said the watchdog should consider blocking Woodford's investment portfolio in Canada. other managers.

"In the Woodford incident, we have the clbadic combination of what we have seen in many financial failures, namely a multiple weakness of performance at different levels," he said at the time. BBC Today show, Friday morning.

He stated that the short sale of badets in Mr. Woodford's Equity Income Fund, which he had blocked withdrawals on Monday, was extending to the entire market and would have a negative impact on the end investors.

"Woodford also manages other funds and continues to sell the same shares as the Woodford Equity Income Fund. This places public investors in a very bad space. It seems that the FCA has done nothing to ask questions about this, "he said.

Lord Myners also criticized FCA for failing to intervene when Mr. Woodford and Link Fund Solutions, which provided regulatory oversight of his fund, took drastic steps to increase the fund's liquidity.

"All the signs were there," he says. "Woodford was forced to start doing smart business to try to stay within the law. FCA stated that they did not know anything was happening – they were in the papers. FCA should have been awake.

His comments followed a day when attention turned to the involvement of regulators in the Woodford debacle.

Nicky Morgan, the Conservative MP, said yesterday that the Treasury Board, under its chairmanship, was closely examining the rapid deterioration of Woodford's flagship fund.

She added that Mr. Woodford should waive the fund's fees when investor redemptions were suspended.

Separately, the FCA and the Guernsey Stock Exchange, on which Mr. Woodford listed some of his unlisted shares, engaged in a very unusual war of words for their respective roles in this case.