The Financial Conduct Authority (FCA) has commenced civil proceedings against Mr Neil Woodford and W4.0, alleging that they have been providing regulated investment advice and making financial promotions without the required authorisation.
According to the FCA, Mr Woodford and W4.0 are operating through a subscription-based platform, www.w4pz.com, to deliver services that fall within the scope of regulated activities. The regulator contends that these activities amount to the provision of investment advice and the communication of financial promotions, which typically require appropriate authorisation under UK law.
The FCA states that, in its view, the conduct of Mr Woodford and W4.0 breaches sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA). Section 19 of FSMA generally prohibits a person from carrying on a regulated activity in the United Kingdom unless they are authorised or exempt, while section 21 restricts the communication of financial promotions unless certain conditions are met. The FCA's action focuses on alleged non-compliance with these statutory requirements.
As part of the proceedings, the FCA is seeking an injunction against Mr Woodford and W4.0. The injunction would be aimed at preventing them from continuing to engage in what the regulator considers to be potentially unlawful activities related to investment advice and financial promotions via the online platform.
W4.0 is identified as the trading name of W Four Point Zero FZE LLC, which is registered in the United Arab Emirates. The FCA's case centres on the regulatory status of the activities being carried out in connection with the subscription-based service offered through the W4.0 platform.
The proceedings highlight the FCA's focus on enforcing the authorisation and financial promotion requirements under FSMA in relation to online and subscription-based financial services. The outcome of the case will determine whether the activities in question are found to be in breach of the relevant provisions and whether the requested injunction will be granted.
