FCA rejects independent Woodford inquiry

The City watchdog has rejected calls to hand its investigation into the collapse of Neil Woodford’s investment empire to an independent judge following criticism that it must relinquish control and be investigated for its own role in the affair. It told activists in a letter that the regulator “cannot delegate these powers and responsibilities to third parties” as “only the FCA has powers under the Financial Services and Markets Act 2000 to investigate regulatory contraventions and take enforcement action”. The letter, signed by FCA chairman Charles Randell on behalf of the board, was sent to campaigners Gina and Alan Miller days after they wrote to non-executive directors urging them to “perform their oversight function” by taking up the “urgent and unanswerable case that the Woodford investigation should not only be conducted by an independent third party but must also include the conduct of the FCA pertaining to the scandal”. Gina Miller argued that the board’s response “clearly confirms, in my view, that the investigation will not touch the FCA’s role so will be a whitewash”. Although Mr Randell’s letter states that the board will “consider the matters” she raised he did not specifically ­mention widening the scope of the inquiry to include a look at the regulator’s own failings.