‘Does anyone at the FCA actually read the newspapers?’ MPs accuse City regulator of falling asleep at the wheel during Woodford fund crisis
- Andrew Bailey, chief executive of FCA, quizzed over why warning signs missed
- Nicky Morgan MP asked: ‘Does anyone in the FCA actually read the newspapers’
- Mr Bailey was accused of being ‘too nice to bankers’ and ‘not curious enough’
City regulators were yesterday accused of falling asleep at the wheel as Neil Woodford’s flagship fund went into meltdown.
Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), was quizzed over why clear warning signs were missed before savers were banned from withdrawing their cash from the fund.
In a terse exchange with MPs, Treasury select committee chairman Nicky Morgan asked him: ‘Does anyone in the FCA actually read the newspapers and listen to what is going on in the industry?’
Andrew Bailey (pictured), chief executive of the Financial Conduct Authority (FCA), was quizzed over why clear warning signs were missed before savers were banned from withdrawing their cash from the fund
Mr Bailey was also accused of being ‘too nice to bankers’ and ‘not curious enough’ about potential wrongdoing in the City.
Mr Woodford shut his popular Equity Income fund as it could not muster cash quickly enough to pay departing savers.
But he sparked further anger with his refusal to waive management fees while savers are denied access to nest eggs.
He has collected almost £1.5million in charges since the fund closed on June 3.
Troubled fund manager Neil Woodford (pictured) shut his popular Equity Income fund as it could not muster cash quickly enough to pay departing savers
Mr Bailey, whose position as a front runner candidate to succeed Mark Carney as governor of the Bank of England is now under threat, urged Mr Woodford to return the fees. ‘As a sign to his investors, it would be a good thing to do,’ he said. ‘He hasn’t, I’m afraid.’
The decision to close the fund must be reviewed on Monday. But Mr Bailey suggested it would be some time before it was reopened.
The chief executive rejected suggestions the FCA was to blame and claimed it was a ‘failure of rules’ that had been exploited by Mr Woodford. He added: ‘Right to the end, it looked manageable.’
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