FCA pursues Neil Woodford again

The Financial Conduct Authority (FCA) is going after failed fund manager Neil Woodford again, this time for allegedly providing unauthorised investment advice via W4.0, his Dubai-based investment platform.

The UK's corporate and financial watchdog commenced civil proceedings against Woodford and W4.0.

The FCA alleges Woodford and W4.0 are "providing regulated investment advice and making financial promotions through the subscription-based platform, www.w4pz.comLink is external, without authorisation."

"In the FCA's view, the activity breaches sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA)," the regulator said.

It is seeking an injunction against Woodford and the platform W4.0 to cease "carrying on the potentially unlawful activities."

On W4.0's website, a disclaimer states: "We exist to explain active investment strategies - with full transparency - so you can see what's inside, why it's there, and the thinking behind it."

"We are not regulated by the FCA or any other regulatory body, and we do not provide financial advice. That's deliberate. If you are looking for advice or for someone to manage your money, W4.0 is not the community for you."

Woodford launched W4.0 about 18 months ago. Woodford said he created W4.0 as a platform "to make my investment thinking and strategies directly accessible to individual investors."

"Through W4.0, I share four core strategies that reflect how I manage money: long-term, valuation-driven and focused on fundamental analysis rather than market noise," he said.

According to LinkedIn, W4.0 is "a new kind of investment platform" for "long-term investors who want clarity, confidence, and control."

"We give you direct access to research-led investment strategies, with full transparency and personal control. You see exactly which companies are in each strategy, why they're there, how they've performed, and when they change. You can even customise them to suit your own preferences. No funds. No intermediaries. Just the insight, tools and transparency you need to invest with confidence," the profile page states.

W4.0 is the trading name of W Four Point Zero FZE LLC and is registered in the United Arab Emirates.

Woodford is the former 'YouTube fundie' who ran the now-defunct Woodford Equity Income Fund (WEIF).

WEIF fell into a liquidity crunch in 2019 after investing in mostly illiquid assets.

Last year, the FCA fined Woodford and his defunct company more than £45 million ($94m) after finding between July 2018 and June 2019, the two parties made unreasonable and inappropriate investment decisions.

Woodford was fined £5.89 million ($12.1m) and banned from being employed in senior manager roles and managing funds for retail investors. Woodford Investment Management (WIM) was slapped with a £40 million fine ($82.1m).