Greetings – Mike here with this week’s Update.

Two thousand two hundred and fifty-six days ago I was in London, visiting a few clients with the boss. The Cricket World Cup had just started, and at least one of us was very excited as a result. We finished our last meeting of the day and found a nearby pub to debrief, and for me to attempt to convert him to the greatest sport in the world.

As we checked our phones it became clear that something was afoot. Missed calls and emails from pretty much every journalist we knew. The Woodford Equity Income fund had been suspended. For many within the industry this was a “remember where you were” moment, and the answer for me and Mark was the pub.

Fast forward to August 2025, and the FCA has finally decided to fine both Neil Woodford and Woodford Investment Management for failures in their management of said fund. Both parties have referred these Decision Notices to the Upper Tribunal so it is not quite the end of the road just yet. And more importantly, with various litigations and what remains of the fund still to be distributed, the pain for the end investors still continues.

The Decision Notices for these cases provide a handy checklist of what not to do if you ever find yourself involved in managing a fund for retail investors, something that Mr Woodford is (upper tribunal appeal notwithstanding) now banned from doing. It also sets out in detail why a large fine and prohibition are appropriate.

One paragraph in particular caught my eye…. “the Authority considers that Mr Woodford’s conduct has resulted in a significant loss of reputation with far-reaching repercussions, such that he is not a fit and proper person to conduct certain regulated activities. In particular, Mr Woodford’s conduct has affected not merely his personal reputation but the reputation of the UK fund management industry and the trust and confidence which the public has in that industry. Public confidence in the UK fund management industry has been significantly damaged as a result of Mr Woodford’s conduct which significantly contributed to the suspension of the WEIF”

It has taken 2,256 days to get to this stage, but for what it is worth I am pleased to see the above recognised and accounted for when sanctions were determined. I’ve got no skin in the game here, but I know people who were invested and their experience has been very bruising to say the least. We also know from our Advice Gap research just how much of an issue lack of trust represents for the sector. A couple of weeks ago the BBC reported how Targeted Support services will be rolled out next year to the general public. Our recent advice gap research showed that whilst consumers might indeed find these messages from providers useful, a lack of trust will prevent many from acting upon them. The comments on the BBC News article make grim reading and reinforce this point. Every time someone like Woodford hits the headlines the collateral damage impacts all of financial services. The regulatory action that was announced yesterday is long overdue and (subject to the appeal) appears to be entirely deserved.

And to close, one of Steve’s favourite artists and also one of the greatest remixes of all time…