The FCA said it was "not informed, and would not have expected notice, of any decision to list the fund's assets prior to their listing"
The Financial Conduct Authority (FCA) has confirmed it is "in discussions" with Woodford Investment Management's authorised corporate director Link Fund Solutions and Geurnsey's stock exchange over the embattled investment firm's decision to list illiquid holdings there.
Woodford's Equity Income fund's unquoted holdings were listed on the International Stock Exchange (TISE), which was deemed "eligible" by Link in compliance with the UCITS Directive, in efforts to keep in line with regulations requiring it to keep its exposure to such assets under 10%.
Woodford Equity Income: How we got here
The FCA said it was "not informed, and would not have expected notice, of any decision to list the fund's assets prior to their listing", but it expects any such decision "to be in compliance with the relevant rules…to ensure the fund's assets remain sufficiently liquid and diversified".
It said: "The FCA has been in discussions with Link Funds and TISE regarding the circumstances around the listing of certain of the fund's assets on that exchange.
"Where the FCA believes there are circumstances suggesting serious misconduct or non-compliance with the rules it may open an investigation."
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The TISE is regulated by the Guernsey Financial Services Commission, which is yet to comment on the reports.
