COMMONS

Nicky Morgan asks Hargreaves Lansdown about its links to Woodford Fund

11 June 2019

Dealing in the units of the LF Woodford Equity Income Fund was suspended last week. Yesterday, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, wrote to the Financial Conduct Authority (FCA) regarding the suspension of the Woodford Fund.

In her letter, Mrs Morgan asked Andrew Bailey, Chief Executive of the FCA, to provide the Committee with information on the FCA’s work on the suspension of the Woodford Fund, ahead of the FCA’s appearance before the Treasury Committee on Tuesday 25 June.

Today, Mrs Morgan has written to Chris Hill, Chief Executive of Hargreaves Lansdown (HL), to answer a series of questions about Hargreaves Lansdown’s links with the Woodford Fund.

Chair's comments

Commenting on the correspondence, Mrs Morgan said:

“Yesterday, we asked the FCA to provide us with details of its supervisory contact with the Woodford Fund. Today, we have asked HL about its links to the Woodford Fund, the Fund’s inclusion on HL’s Wealth 50 list, and the number of HL customers exposed to the Fund.” 

Commenting on Mr Bailey’s comments this morning that Mr Woodford should “consider his position” on the waiving of the Fund’s management fees, Mrs Morgan said:

“As I said last week, the suspension of the Fund provided Mr Woodford with some breathing room, so he should afford his investors the same space and waive the Fund’s fees while it is suspended.

“Mr Bailey’s comments are welcome; Mr Woodford should now act and waive the fees.”

Further information 

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