The Financial Conduct Authority (FCA) will use law firm Clifford Chance to conduct an independent inquiry into the announcement of its ‘zombie’ fund review.
The closed life policies review will be led by the firm’s senior litigation partner Simon Davies.
The review comes after the Daily Telegraph broke the news the financial watchdog was planning to review the £12 billion industry on 28 March, ahead of the FCA’s annual review released on 31 March and resulted in billions wiped off the value of insurers.
On the afternoon of the 28th, several hours after the story had broken, the FCA sent out a short statement trying to restore some semblance of calm, stressing new rules would not be imposed retrospectively.
However, this failed to appease insurers who considered taking legal action in the aftermath.
Clifford Chance will assess the way the FCA communicated its message and determine whether it has procedures in place to control the release of price sensitive information.