We’ve written many times over the past few months about the demise of Britain’s most famous active fund manager, Neil Woodford.
But what are the implications for financial advisers? How can we help prevent similar episodes in the future.
TEBI is pleased to be supporting two one-day workshops in December which will address the issues surrounding Woodford and, in particular, funds investing in illiquid assets.
In the words of its convenor Paul Resnik, the FSF is “a gathering place for members of the financial services community who want to build advice businesses, provide services, and offer investments and other financial products around a suitability standard”.
The workshop will equip advisers with the knowledge they need to recognise, analyse and advise on illiquid assets.
Announcing the workshops, Paul Resnik said: “I believe the Woodford scandal is a seismic event, that has shifted the ground beneath our feet forever.
“’Chasing alpha’ with a portion of a portfolio is now in doubt as a strategy. Because chasing alpha can lead you down the dead-end alleyway of illiquidity.
“Illiquidity is one of the yins to the yang of above-market returns. Funds frozen, or lost, give us a new focus on this issue, which is being overlooked in the current hunt for returns.
“(A financial adviser) can still advise around illiquid assets. But you need to know how their suitability aligns with the needs, capacities and circumstances of the client.”
Tickets are priced at £75 each and you can book your place via the FSF website. Attendees will qualify for five hours of CPD points.
I’m going to be there myself, and I hope you will want to join us.
Remember, the Woodford saga has seriously dented the public’s trust in financial advice and the wider investment industry. Help us to start restoring that trust — and prevent similar events occurring in the future.