Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Insurers consider legal action over FCA 'potential market abuse'

3 comments
Insurers consider legal action over FCA 'potential market abuse'

Six of the UK’s biggest insurance businesses are taking legal advice about the Financial Conduct Authority’s announcement last week that it would review the management of historical policies.

The leak of the story to the Daily Telegraph last Friday knocked shares in insurance businesses by as much as 10%. Chancellor George Osborne said this week he was ‘concerned’ by the circumstances of the announcement, which he said had damaged the reputation of the FCA.  

City law firm Slaughter & May has produced a legal briefing on three potential allegations of market abuse related to the sharp falls in shares, according to the Financial Times.    

‘There are sufficient grounds here for an investigation into potential market abuse,’ the statement notes.

Smaller pensions and insurance businesses such as Resolution and Phoenix, which specialise in managing old policies lost more than 10% on Friday morning, with larger businesses such as Legal and General and Aviva falling by around 5%.

Having sharply fallen in early trading, much of the losses were made back after the FCA clarified the extent and scope of its investigation, but the regulator has faced criticism that it took until the mid-afternoon to formally respond to the story.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter