Tuesday 11 June 2019 9:00 am

FCA chief Andrew Bailey calls on Neil Woodford to waive management fees

The head of the City regulator has called on Neil Woodford to waive management fees for investors in his suspended fund.

Andrew Bailey, the chief executive of the Financial Conduct Authority, said Woodford should “consider his position” on the fees.

Woodford has declined to cancel the charges, which Nicky Morgan MP said was a “huge amount of money”.

Read more: Hargreaves Lansdown boss apologises for Woodford fund suspension -suspension

Bailey told the BBC that Woodford should “very seriously” consider his position.

Investors are unable to withdraw funds after the flagship Woodford Equity Income Fund was frozen following a spike in redemptions.

“His job now is to get his fund back into a position where there can be orderly trading, so he has his work cut out now,” Bailey added.

MPs wrote to the FCA yesterday regarding the suspension.

Treasury committee chair Morgan asked Bailey to outline the watchdog’s supervisory contact with the fund. Morgan asked Bailey whether the regulator intends to launch an investigation.

“Questions have been raised about the FCA’s alertness to the problem” Morgan said.

Read more: FCA under scrutiny from MPs over Woodford suspension

She added: “The FCA must set out the details of its supervisory contact with the Woodford Fund, whether it will investigate the events that led to the suspension of the Fund, and more broadly, how long such a suspension should be.”

The treasury committee will quiz the FCA over the Woodford Equity Income Fund at an evidence session on 25 June.