UK lawmaker Morgan backs tighter regulation of fund 'buy lists'

LONDON, June 26 (Reuters) - Treasury Select Committee Chair Nicky Morgan has said she would back tighter regulation of so-called 'best buy lists' as the regulatory fallout from the suspension of one of Britain's biggest investment funds continues. Speaking at the Investment Association policy conference in London on Wednesday, Morgan criticised fund manager Neil Woodford for failing to waive fees imposed on investors caught up in the gated LF Woodford Equity Income Fund, and said the decision further eroded public trust in the financial industry.

"He seems to have learnt little from the financial crisis," Morgan said, pointing to the veteran investor's heavy investment in illiquid assets.

Morgan told delegates that had a principles-based system been in place to regulate UCITS funds, Woodford's fund may not have pushed liquidity limits.

Financial Conduct Authority Chief Executive Andrew Bailey said earlier this month that 'best buy' tables should be impartial and updated in a timely way.

"We will look at these again to ensure they and others have abided by those principles," Bailey said. (Reporting By Simon Jessop, writing by Sinead Cruise, editing by Carolyn Cohn)