Jersey regulator says new Woodford firm has not applied for authorisation

The Jersey Financial Services Commission has not yet received an authorisation application from WCM Partners, the new investment management firm planned by Neil Woodford.

"The JFSC is 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," the financial services watchdog said in a statement.

"It would be normal practice when making such an announcement to make it clear that it is 'subject to regulatory approval'."

WCM Partners

However, the trading name WCM Partners has been reserved in the Jersey Registry, the regulator added.

The stockpicker infuriated investors after he said on Saturday he was preparing to launch a Jersey-based biotech fund despite the FCA's ongoing investigation into the circumstances leading up to the suspension of Woodford's flagship fund in June 2019.

The FCA said in a statement that its investigation was "progressing" but had been hampered by the pandemic. It had also contacted the Jersey regulator following reports that Woodford's new business would operate from there.

"In taking any decision on whether to authorize a firm, we consider whether it is ready, willing and organized to comply, on a continuing basis, with our requirements and standards," Mark Steward, FCA's director of enforcement and market oversight, said.

Fitness

"That includes, for example, the sustainability of the firm's business model and the fitness of its management."

Woodford revealed in an interview with the The Sunday Telegraph at the weekend that he plans to establish a new venture, Woodford Capital Management Partners, in Jersey. However, unlike his previous funds, it would cater to professional investors only.