Hargreaves Lansdown CEO Apologizes After Woodford’s Fund Stumble

The video discusses challenges faced by investors due to poor performance and outflows, particularly in small and mid-cap stocks. It highlights the difficulty of liquidating positions in a tough market, leading to halted redemptions. The situation is compared to the 2007-2008 financial crisis, questioning regulatory oversight. Historically, suspending redemptions is rare, and regulators are now scrutinizing the issue.

What was the primary reason for the investor's outflows?

• High performance

• Regulatory changes

• Market stability

• Poor performance

Why was it difficult for the investor to liquidate positions?

• Small and microcap stocks

• Lack of buyers

• High demand for stocks

• Market volatility

Which past financial event does the current situation resemble?

• The 1987 stock market crash

• The 1997 Asian financial crisis

• The 2007-2008 financial crisis

• The dot-com bubble

What is unusual about suspending redemptions in mutual funds?

• It happens frequently

• It is encouraged by regulators

• It is very rare

• It is a common practice

How many times have regulators allowed redemption suspensions since the 1940s?

• Six times

• Ten times

• Thirty times

• Twenty times