Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter