(Bloomberg) -- The multi-trillion-dollar investment fund industry must prepare for tougher scrutiny after Neil Woodford's woes, according to a top U.K. lawmaker.
The fund market is going to come in for questioning, Nicky Morgan, chair of the U.K. Parliament's Treasury Committee, said in a Bloomberg TV interview. Authorities are now examining why Woodford, one of the country's most prominent stock pickers, was forced to halt withdrawals from his flagship fund.
“The fund industry needs to understand that they are about to come under the spotlight just as Neil Woodford has done,” Morgan said.
Morgan said that authorities should review rules governing investments in hard-to-sell securities to ensure that people can get their funds when they want. Woodford froze redemptions from his flagship fund last month, stunning the financial world and leading Bank of England Governor Mark Carney to say that some funds are “built on a lie” when they promise easy withdrawals.
To contact the reporters on this story: Silla Brush in London at sbrush@bloomberg.net;Anna Edwards in London at aedwards49@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Patrick Henry, Keith Campbell
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
