The $46 million fine still casts a shadow

The Financial Conduct Authority (FCA) has initiated civil proceedings against former fund manager Neil Woodford and his new venture W4.0,alleging they provided regulated investment advice and made financial promotions without proper authorisation. woodford's spokesman criticised the regulator's decision to publicise the action before proceedings were formally served, calling it regrettable and asserting that the service offered does not require authorisation. this latest development follows the high-profile collapse of Woodford's flagship fund seven years ago, which resulted in a £46 million fine and a ban from holding top City roles , a punishment he continues to challenge .

Despite the past scandal, Woodford launched W4.0 as a comeback vehicle, but the FCA now seeks an injunction to halt what it deems potentially unlawful activities.

W4.0's UAE base and the reach of UK regulations

The City watchdog alleges that Woodford and his company have been providing regulated investment advice and making financial promotions without the necessary authorisation, prompting it to seek an injunction to stop these potentially unlawful activities. This move marks the latest escalation in a long-running saga that began with the High-profile collapse of Woodford's flagship investment fund seven years ago, a debacle that led to massive losses for investors and a series of severe penalties from the FCA.

In response to the FCA's announcement, a spokesperson for W4.0 expressed surprise and disappointment, stating that the regulator chose to make the matter public before any legal proceedings had been formally served on them and before an ongoing nine-month dialogue between the two parties could reach a conclusion.

The case raises important questions about the reach of UK financial regulations into overseas entities

The case raises important questions about the reach of UK financial regulations into overseas entities, the definition of regulated advice versus general investment commentary, and the ongoing efforts of regulators to protect investors from potential mis-selling.. It also highlights the personal and professional risks Woodford continues to face as he attempts a rehabilitation in the financial industry.

The public airing of this dispute, with each side giving its version of events, sets the stage for a contentious legal battle that will likely scrutinise the nature of W4.0's client interactions and the precise interpretation of what constitutes regulated financial advice and promotions under English law.

Who is the unnamed buyer?

The FCA's decision to pursue an injunction suggests it believes W4.0's operations within the UK or targeting UK investors cross the line into regulated activities without the required approvals. The regulator's statement underscores its commitment to preventing unauthorised firms from offering financial services to British consumers, especially those associated with figures with a record like Woodford's.

The case also highlights the ongoing efforts of regulators to protect investors from potential mis-selling and the perosnal and professional risks Woodford continues to face as he attempts a rehabilitation in the financial industry.