FCA

FCA Consults on Fund Product Information and Cost Disclosure CP24/30 – ShareSoc Responds

In November 2024, the FCA launched a consultation on a proposed product information and cost disclosure regime for funds – now referred to by the regulator as CCIs (Composite Consumer Investments).  ShareSoc has become increasingly concerned in recent years by the divergent and often perverse implementations of cost disclosure by UK retail platforms under the EU regulations for Packaged Retail and Insurance-Based Investment Products (PRIIPS) and MiFID II. A particular area of concern has been listed closed-end funds (investment companies and investment trusts), ...

Last chance to join the RGL Woodford Group Litigation against Hargreaves Lansdown

30th April 2025 Deadline Announced Claims management firm RGL has announced a deadline for individuals to register their potential claims under the no-win-no-fee funding arrangement. Writing in The Mail on Sunday, Jeff Prestridge notes that the RGL claim is free to join, with RGL taking a share of the bounty only if the group claim is successful. It's time to make your mind up if you were a Hargreaves customer who invested in Woodford Equity Income Fund (WEIF). There are currently over 8,300 claimants on ...

FCA Consultation – Modernising Redress

An FCA consultation on how to improve the Financial Ombudsman Service (FOS) and other consumer redress mechanisms  In November 2024, the FCA issued this consultation, requesting suggestions for improvements to handling complaints/disputes regarding financial services, especially so-called “mass redress events”.   Many of ShareSoc’s campaigns involve situations where numerous individual investors have suffered losses in circumstances that we believe should not have arisen. So, we have considerable experience of representing and trying to obtain redress in such circumstances.  We are lucky to have recently recruited ...

Digital 9 Infrastructure – Catastrophic Performance Harms Shareholders

ShareSoc has considered the DGI9 case carefully and has approached the FCA.  ShareSoc member Paul de Gruchy has written previously about disturbing revelations at DGI9. Further research by Paul has revealed apparent failures by TriplePoint, the fund’s former Alternative Investment Fund Manager (AIFM) to comply with the investment policies set out in the fund’s prospectus, contributing to a collapse in DGI9’s NAV and in its share price.  The case has been considered by ShareSoc’s policy committee which decided to approach the FCA with ...

ShareSoc Evidence to Lords on FCA Enforcement

ShareSoc has submitted an evidence statement to the House of Lords Financial Services Regulation Committee regarding their consultation on the Financial Conduct Authority’s enforcement guidance proposals.  We reported here that we support the FCA’s proposals to improve the transparency of their enforcement actions.   The need for change was further underlined at a meeting between ShareSoc and the FCA on 14th November, at which we expressed concerns about a specific case.   Under the current regime, the FCA will not disclose whether it is taking, or ...

The Pros and Cons of Shareholder Litigation

  A key element of ShareSoc’s mission is to ensure fair treatment for individual investors. We often campaign when investors are misled, or their funds are misappropriated. There are two principal outcomes we look for: 1. Redress for losses that should not have happened. 2. Punishment for those that mislead investors or misappropriate funds, to deter others. This article focuses on the first of these desired outcomes, although we are equally concerned about both. Wherever losses are recoverable we want to see that happen. The question we ...

ShareSoc supports FCA proposal for criminal background checks on owners and controllers of financial institutions

ShareSoc has responded to FCA consultation CP24/11 ShareSoc represents the views of individual investors to Government and Regulators. One way we do this is by responding to their consultations, of which there have been quite a lot recently - we can expect more with the recent change in Government. On 30 July 2024, ShareSoc and UKSA made a joint response to the latest Financial Conduct Authority quarterly consultation CP24/11: FCA Quarterly Consultation No. 44 There were 14 questions in the consultation, but we ...

FCA Consultation on Enforcement Practice & Transparency

ShareSoc and UKSA respond to FCA Consultation “CP24/2: Our Enforcement Guide and publicising enforcement investigations - a new approach”. We are delighted that after many years of lobbying by ShareSoc and others, the FCA is bringing forward proposals to improve their enforcement process by increasing transparency and naming firms under investigation A primary operational objective of the FCA is to protect consumers of financial services, including our members, from bad conduct. Investor confidence in the current regulatory regime is very low. Individuals who report ...

Consumer Protection

I was very interested in ShareSoc’s proposals for the Labour Party concerning the review of financial services. My particular focus was the section headed “Consumer Protection”. I have been a tax adviser since 1985 and a financial planner since 1991. I have always considered the client’s understanding of the pros and cons of an investment strategy to be a pre-requisite for any investment advice. However, the constant impact of regulation on the advice process has led to poorer understanding by the client ...

Will The FCA Help or Harm Home REIT Shareholders?

The FCA has finally stepped in, but will this help shareholders or just devalue their investment further? The destruction of shareholder value at Home REIT has been horrendous. Over £853m was raised from shareholders. The latest published valuation of the REIT’s property portfolio is only £413m (as at August 2023) and the trust has net debt of around £144m (as at February 2024), so NAV is now less than £369m. The background to this sorry saga is contained in this article by ShareSoc ...

Woodford Campaign Update 16, 15 February 2024

WOODFORD: LINK JUDGMENT AND NEXT STEPS Mr Justice Richards approved the Link Scheme of Arrangement (subject to appeal) without any conditions. This was expected, given the 93% vote in favour by Scheme Creditors, but it doesn't close the door on the Woodford scandal. In a tight and carefully worded legal judgment, the Judge explained that the “FCA Total Amount” of harm identified (£298 million) relates only to the relative loss of value incurred by those who held the fund at suspension date relative ...

Woodford Campaign Update 14

Vote outcome and Court Hearing 18 Jan 2024  OUTCOME OF SCHEME MEETING  A single meeting of Scheme Creditors (the Scheme Meeting) was held on 13 December 2023. Work is ongoing to verify the votes cast at the Scheme Meeting, however, provisional numbers are set out below.   Over 54,000 Scheme Creditors attended the Scheme Meeting in person, or by proxy. Of the Scheme Creditors who voted, approximately 93.7% in number, representing approximately 96.1% in value, voted in favour of the Scheme.  Of the three voting ...