The Jersey Financial Service Commission (JSFC) has expressed “disappointment” about the reports of Neil Woodford’s latest investment venture Woodford Capital Management (WCM) Partners.
This is because the firm has not applied for authorisation in Jersey or in the UK.
The JSFC said: “We note that WCM Partners has publicly announced in a press release that it plans to operate as an investment management company out of Jersey and Buckinghamshire.
“We are disappointed to see this announcement in advance of either receiving or processing any application from this company for authorisation to conduct licensed business as an investment management firm in Jersey.
“It would be normal practice, when making such an announcement, to make it clear that it is ‘subject to regulatory approval’.
“We wish to advise that, although the trading name ‘WCM Partners’ has been reserved in the Jersey Registry, no application has been received or processed to authorise WCM Partners to operate as a Jersey company or an authorised investment management firm in Jersey.”
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In 2019, the fallen-from-grace fund manager was forced to shut down his investment company Woodford Investment Management and flagship fund Woodford Equity Income due to serious illiquidity issues.
Investors are still trapped in the fund, with some being hit with losses of around 50%.
But on 14 February 2021, Woodford revealed he had set up another company, based in Jersey and Buckinghamshire, targeting the very same niche, high risk and illiquid assets that turned out to be so problematic the first time around.
It seems, however, that the fund manager’s latest venture won’t be made available to retail investors.
On 17 February 2021, the Financial Conduct Authority (FCA) revealed it was in talks with the Jersey regulator on any future applications made by Woodford or his newly launched company, for either a fund or an entity.
