The FCA published a warning notice on 11 April against Neil Woodford and Woodford Investment Management alongside its initial findings in relation to Woodford fund administrator Link Fund Solutions.

The regulator said that Mr Woodford had a "defective and unreasonably narrow" understanding of his responsibilities for managing liquidity risks.

It warned it was considering regulatory action.

The FCA also said that Mr Woodford and Woodford Investment Management failed to ensure that the Woodford Equity Income Fund's liquidity risk framework was appropriate, to respond appropriately to the ongoing deterioration in the fund's liquidity and to maintain a reasonable liquidity profile for the fund.

Mr Woodford and his company Woodford Investment Management are to challenge the FCA’s findings on the management of liquidity for the Woodford Equity Income Fund, according to their lawyers.

Mr Woodford said he plans to use his new website to share his side of the story on the events leading up to the failure of the Woodford Equity Income Fund in 2019.

He said: “With respect to my story, the truth is that I am neither hero nor villain. I was never the financial saviour of Middle England, but then, neither do I think I was worthy of the onslaught that followed the failure of my business. There is much more to be revealed about the story, and I will shed some light on the events that led to the losses that investors suffered when the fund was wound up.”

Mr Woodford said he also planned to share his views on economic, social and political issues that impact the UK financial services sector.

He said: “The financial media have variously described me as “the man who made Middle England rich” or “Britain’s answer to Warren Buffett”. In contrast, the failure of Woodford Investment Management in 2019 fed an altogether different narrative, transforming me from a hero to a villain in the eyes of many.

“These experiences and others have equipped me to better understand the key ingredients for success in the corporate world. Ultimately, it is this knowledge and experience I want to share with you in the form of insights on the economy, what’s really going on and what good looks like in the corporate world, both in early-stage and mature businesses.”

The FCA has yet to specify what, if any, regulatory action it will take against Mr Woodford and Woodford Investment Management should its final decision rule against Woodford.

The FCA said it would detail its proposed sanctions and its full findings public “at an appropriate point.”

Those invested in the Woodford Equity Income Fund when it was suspended are starting to receive a share of a £230m redress scheme funded by the authorised corporate director of Link Fund Solutions, which was approved by the High Court in February.

Investors have been waiting for five years for the redress scheme after the fund was suspended following high outflows in 2019.

The FCA originally calculated the losses arising from failures in liquidity management to remaining investors as being up to approximately £306m.