LONDON (Reuters) - The recent suspension of a high-profile British equity fund could become a "very big problem" if it caused investors to doubt the integrity of the financial system, Bank of England policymaker Anil Kashyap said on Tuesday.
Neil Woodford's asset management firm suspended dealing the 3.7 billion pound ($4.63 billion) LF Woodford Equity Income Fund this month, drawing criticism from politicians and regulators.
"I don't think Woodford per se creates financial stability risks, but if it undermines confidence in the system it could be a very big problem," Kashyap, a member of the BoE's Financial Policy Committee, told a committee of lawmakers in parliament.
(Reporting by David Milliken, writing by Andy Bruce; Editing by William Schomberg)
