FCA's Randell: UCITS rules sparked 'perfect storm' for Woodford Equity Income

Scope for change post-Brexit

Inadequate regulatory standards within the European UCITS fund regime caused a "perfect storm" for the embattled Woodford Equity Income fund and must be reassessed by UK regulators post-Brexit, Financial Conduct Authority Chairman Charles Randell has said.

As the fund quickly approaches the 28-day deadline for reassessment of its gating, Randell and FCA chief executive Andrew Bailey told the Treasury Select Committee on Tuesday (25 June) that Brexit could be used as an opportunity to move towards a principles-based UK regulatory system and away from a "box-ticking" approach associated with the EU. Woodford saga will have 'ramifications for active management industry' They explained that Woodford Investment Management's use of the so-called ‘10%' rule for illiquid stocks, combined with other aspects of the regime, had led to the gating. ...