W4.0 rejects FCA legal action over alleged unauthorised investment advice in UK

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W4.0 rejects FCA legal action

Highlights

W4.0 rejects the FCA's allegations that it provided unauthorised regulated investment advice and financial promotions in the UK.
The FCA plans to sue Woodford and W4.0, while W4.0 claims it engaged with the FCA for nine months and adjusted its services accordingly.
The dispute adds to ongoing regulatory pressure after the FCA sought to ban Woodford and fine him and Woodford Investment Management £45.9 million last August over a 2019 fund collapse.

Regulatory dispute and company response

As reported by Reuters, W4.0 says it rejects the Financial Conduct Authority's allegations that it provided regulated investment advice and issued financial promotions without authorisation.

The FCA says it plans to sue Woodford and W4.0, after alleging the business crossed into regulated activity. W4.0 describes itself as a research and commentary platform focused on analysis and insight on markets and the economy, and says it does not accept the regulator's characterisation of its service.

The company says it has engaged with the FCA for nine months and made changes and adjustments to accommodate the regulator. It also calls the FCA's decision to publicly flag legal action before proceedings have been served, and before discussions were concluded, regrettable.

W4.0 says it deliberately told readers it was not regulated and did not provide financial advice. It adds that, like other publishers and platforms offering similar information, its service was designed to sit outside the regulatory perimeter and that it remains confident this is still the case.

Broader pressure on Woodford's business activities

Woodford does not respond to a request for comment sent over LinkedIn.

The latest dispute comes after the FCA last August sought to ban Woodford and fine him and Woodford Investment Management a combined 45.9 million pounds, or $61.5 million, over alleged management failures at a flagship fund that collapsed in 2019. The collapse left hundreds of thousands of investors out of pocket.

Woodford and Woodford Investment Management say they plan to challenge those penalties in court. The case keeps regulatory scrutiny on Woodford's activities in the UK investment sector as legal challenges continue.

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