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Join Which? MoneyFCA launches legal action against former fund manager Neil Woodford – what investors need to know
The action is the latest move in the FCA's crackdown on 'finfluencers'
Megan is a senior researcher and writer at Which?, with a background in data analysis and stats in the public and charity sectors.
The Financial Conduct Authority (FCA) has launched legal action against former fund manager Neil Woodford and his latest venture, W4.0.
The regulator alleges content published through W4.0's subscription platform amounted to regulated investment advice and financial promotions that weren't authorised by the FCA.
Woodford, whose investment empire collapsed in 2019, leaving thousands of investors out of pocket, has since returned to public life through a blog, podcast and paid investment commentary service.
Please note that this article is for information purposes only and does not constitute advice. Please refer to the particular T&Cs of an investment platform before committing to any financial products.
Who is Neil Woodford?
Woodford was once a popular investment manager, even picking up a CBE for services to the economy in June 2013.
His investment fund, the Woodford Equity Income Fund, collapsed in 2019, leaving thousands of investors out of pocket.
When the Woodford Equity Income Fund began to decline after a period of strong performance, investors began to withdraw money.
However, the fund was not well-equipped to handle this, as there was not enough readily accessible cash to pay out to exiting investors, and the fund was frozen to prevent anyone else from withdrawing their money.
In August of last year, the FCA fined both Woodford (£5.9m) and his company, Woodford Investment Management (£40m), for their failure in managing the fund. Woodford was also banned from managing funds for retail investors in the future.
In a statement on its website at the time, WIM said that it 'strongly disagree[d]' with the FCA's findings and 'welcome[d] the opportunity to set the record straight'.
Woodford and WIM have appealed, and the findings remain provisional while they are considered by the Upper Tribunal.
What is W4.0?
W4.0 is Woodford's latest business venture, which focuses on investment commentary and market analysis.
In late April 2024, Woodford returned to public life with his blog, Woodford Views and added the podcast Noise Cancelling with Neil Woodford in September 2025, covering similar topics.
The business is based in the United Arab Emirates and doesn't manage client money.
However, the FCA alleges that material published through W4.0's subscription platform crossed the regulatory boundary by constituting regulated investment advice and financial promotions communicated without authorisation.
In a statement, W4.0 said: ‘Throughout our dialogue with the FCA, we have worked to understand precisely which features of the service it considers fall within the regulatory perimeter.
'At each stage, we made changes and adjustments in response to accommodate the FCA. We have continued to engage with it to seek a resolution. We would have continued the dialogue, and it is regrettable that the FCA has chosen to litigate instead.’
Should you listen to 'finfluencers'?
Woodford is just one of a huge number of online personalities giving investment advice, known as finfluencers.
The FCA has stepped up efforts to tackle finfluencers in recent years, particularly where content may constitute unauthorised financial promotion or investment advice.
Earlier this year, reality TV personalities linked to programmes, including Geordie Shore and Big Brother, pleaded guilty to offences relating to unauthorised financial promotions following an FCA investigation.
Some finfluencers promote dodgy schemes, while others are earnestly trying to provide financial education. It can be hard to tell who is trustworthy.
- Find out more: crackdown on finfluencers and how to spot risky advice.
What should you do before acting on investment tips online?
Be wary of personalities pushing specific stocks or types of investment – this counts as regulated activity and could mean they're breaking the law.
Companies or individuals have to be approved to promote investments or give financial advice in the UK, so that you can take action or get help if that advice is inappropriate. When the person giving advice is not regulated, you have no access to that support.
You can check the FCA register to see if a company or individual is regulated for specific activities.
If they aren't regulated, trustworthy sources will only offer more general education about how investments work, and won't guarantee you'll make money based on their insights.
If you're struggling to make financial decisions for yourself and need help, consider speaking with an FCA-regulated independent financial adviser. You can find advisers through unbiased.co.uk or vouchedfor.co.uk.
- Find out more: how to find a financial adviser.
