FCA: Woodford affair highlights need for post-Brexit regulatory shake-up

'Following the letter, but not the spirit, of the rules'

Events leading to the gating of the Woodford Equity Income fund exemplify the need for changes to UK financial regulation after Brexit, according to Financial Conduct Authority (FCA) chief executive Andrew Bailey.

Woodford Investment Management's conduct, according to the regulator, was a stark example of UK firms "following the letter, but not the spirit, of the rules", raising "questions about the rules themselves". The FCA has been vocal in recent months about both the opportunity offered by Brexit to reassess the nature and scope of UK financial conduct regulations, as well as the need to move to a regulatory regime based on "principles" rather than the rules themselves. Speaking at the FCA's annual public meeting on Wednesday, Bailey said: "Rules are a crucial mechanism for delivering outc...