View more on these topics

FCA urged to investigate Woodford-held Burford Capital

Magnifying-Glass-And-Text-Kindle-Contract-700x450.jpgHedge fund Muddy Waters has asked the FCA to investigate Woodford-held Burford Capital’s accounting practices.

This comes the day after the litigation finance company called on the watchdog to investigate alleged illegal market manipulation by Muddy Waters.

Buford Capital is dual-headquartered in the UK and the US and has the-second largest holding in Neil Woodford’s suspended Woodford Equity Income Fund.

Muddy Waters published a 25-page report on Burford yesterday after it accused the hedge fund of illegal market manipulation in a stock exchange statement.

It says: “We welcome scrutiny by the FCA on the Burford matter. We believe that management’s conduct has possibly given rise to sanctions claims by the FCA.

“Muddy Waters stands ready to assist the FCA in any inquiry, and as has been the case for the past nine years of our short activism, we have nothing to hide regarding our own actions.”

Burford’s share price fell 19 per cent last week following a tweet from Muddy Waters about a forthcoming attack on an unnamed “potentially insolvent” company, “possibly facing a liquidity crunch”.

Muddy Waters also called the firm’s accounting practices a “fiasco” in the tweet.

The hedge fund published a dooming report criticising Burford’s accounts and management in response which saw shares fall a further 46 per cent.

The FCA says it became aware of the situation early last week and is “undertaking wide-ranging enquiries.”

Recommended

1

AJ Bell calls on new chancellor to simplify Isas

The chief executive of investment platform AJ Bell has called on new chancellor Sajid Javid to simplify Isa rules to close the savings gap. Andy Bell says Isas have become “unnecessarily complicated” and the complexity is a barrier to people saving more. In the open letter, Bell writes: “As the newly appointed chancellor I believe […]

1

Five minutes with…Julian Penniston-Hill, Intelligent Money CEO

Intelligent Money chief executive Julian Penniston-Hill talks demonstrating value for money and the future of one man bands ahead of Money Marketing Interactive Harrogate. How can advisers show they are value for money? By focusing on the value inherent in holistic financial planning, rather than focusing on investment selection. Many advisers are doing this already, or moving […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com