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FCA bosses defer bonuses on insurance probe woes

FCA bosses defer bonuses on insurance probe woes

Financial Conduct Authority chief Martin Wheatley has chosen to defer his annual bonus, alongside a raft of colleagues, on account of the ongoing probe into zombie insurance funds.

Sky News reported that Wheatley and eight colleagues on the FCA's executive committee have decided not to accept bonus payments for last year until the inquiry completes. Their decision is expected to be disclosed in the FCA's annual report, published on July 9.

The FCA executive committee includes Clive Adamson, director of supervision; Tracey McDermott, director of enforcement and financial crime; David Lawton, director of markets; general counsel Sean Martin; and Chris Woolard, director of policy, risk and research.

The move follows the FCA's decision to brief a newspaper about an inquiry into around 30 million policies held in zombie insurance funds, which subsequently wiped billions of pounds off the value of insurance companies after sparking panic among investors.

The FCA then issued a clarifying statement about the terms of its review six hours after the story had broken, which helped many of the companies to see their shares rebound. However, the debacle has sparked anger among insurance companies and Treasury officials and event attracted criticism from chancellor George Osborne.

The FCA has set aside around £1.7 million for the cost of the inquiry.

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