Question to the HM Treasury:

To ask Her Majesty's Government (1) whether they, or the Financial Conduct Authority, are monitoring the use by fund managers of forward equity subscription commitments to leverage the gearing of open-end fund portfolios, and what assessment they have made as to whether such fund managers are correctly reporting the existence of such commitments to potential and actual investors in relevant funds; and (2) whether they have reviewed the arrangements made and signed by Woodford Investments as a principal or agent for funds.

This is a matter for the Financial Conduct Authority (FCA), which is operationally independent from Government. The question has been passed on to the FCA. The FCA will reply directly to the noble Lord by letter. A copy of the letter will be placed in the Library of the House.