FCA Sues Neil Woodford, Job Scheme Shows Promise & More

Yesterday brought significant developments in UK finance, from regulatory action against a fallen investment star to promising employment schemes and concerning delays in consumer protection. Here's what happened and why it matters for your money.

FCA Takes Legal Action Against Neil Woodford

The Financial Conduct Authority is suing former investment star Neil Woodford for allegedly providing unauthorised investment advice online. The regulator is seeking an injunction against Woodford and his UAE-registered company W4.0 to stop what it describes as "potentially unlawful activities".

The move comes months after the FCA announced plans to ban Woodford from senior City roles following the collapse of his popular equity fund, which trapped thousands of investors' money. For consumers, this serves as a stark reminder of the importance of working with properly regulated financial professionals when making investment decisions.

Promising Job Support Scheme Could Expand Nationwide

A government-funded pilot scheme providing "hyperlocal" job support in 10 English neighbourhoods has shown promising early results, according to a new evaluation. The JobsPlus scheme, backed by the Department for Work and Pensions and the Youth Futures Foundation, focuses intensive support in small areas of predominantly social housing.

The scheme uses "community champions" to engage hard-to-reach people in local areas, echoing a successful long-established programme in the US. Early signs suggest the approach could be scalable nationwide, particularly benefiting young people struggling to find work. Better employment prospects ultimately mean improved financial stability for households across the country.

Bailiff Regulation Reforms Face Concerning Delays

The government has been criticised for slow progress on promised bailiff regulation reforms, a year after pledging to make independent oversight mandatory. The Enforcement Conduct Board, which currently oversees the industry in England and Wales, has warned of "lack of visible progress" and "no clear plan".

This matters because bailiffs collect more than £1bn annually from indebted Britons, and concerns persist about harmful practices in the industry. The delays mean consumers facing debt collection continue to operate under the current system, which critics argue provides insufficient protection for financially vulnerable households.

Energy Giant's Administrative Failures Burden Bereaved Families

ScottishPower has been criticised for sending multiple cheques and debt collection letters addressed to deceased customers, despite being informed of their deaths. In one case, the company sent six cheques in a dead person's name for a £430 electricity credit, which couldn't be cashed, while simultaneously pursuing a £130 gas debt from the deceased's estate.

This highlights systemic issues with how major utility companies handle bereavement procedures. If you're dealing with a deceased relative's accounts, ensure you have proper documentation and consider seeking support from a regulated financial adviser to navigate the administrative maze that often follows a death.

The Bottom Line

Always verify any financial adviser's FCA registration before taking advice, especially given ongoing enforcement actions. If you're struggling with employment or debt, help may be available through government schemes or regulated professionals. When dealing with deceased relatives' finances, document everything and don't hesitate to escalate complaints when companies fail to follow proper procedures. For complex financial planning needs, consider consulting with an FCA-regulated adviser who can provide personalised guidance.