WPCT.L Share News (WPCT)

(Sharecast News) - The Financial Conduct Authority has opened an investigation into the events leading up to the suspension of one-time star stock-picker Neil Woodford's flagship equity income fund.In a letter to the Chair of the Treasury Select Committee, FCA chief executive Andrew Bailey said: "We have opened an investigation but cannot comment any further."Earlier this month, Woodford Investment Management said dealing in shares of its flagship Woodford Equity Income Fund had been suspended until further notice following "an increased level of redemptions".Bailey said in the letter that the FCA has been in touch with Link, Woodford's authorised corporate director and the regulated manager of the fund, since February 2018 about issues related to "liquidity risks" from the Woodford fund."In February and March 2018, the FCA engaged with Link in connection with two breaches of the 10% limit on the maximum proportion of unlisted securities held within WEIF," he said. "Following our engagement, these breaches were each notified to us as resolved within a timeframe we had agreed with Link."Bailey added that following this engagement, Link revised its liquidity risk management measures to ensure it could meet redemptions on demand and no further breaches of the 10% limit were notified.