The Australian financial regulator has written to the FSA over the conduct of Faraday Group chief executive Milan Vukelic.

The Australian Prudential Regulation Authority (APRA) banned Vukelic from certain general insurance activities in Australia.

Vukelic was found to have improperly boosted Australian insurer FAI's 1997/98 profit and loss.

APRA said Vukelic was employed by the General Re (GR) group of reinsurers and was involved in the implementation of a financial reinsurance transaction with FAI.

It said that the arrangement was disguised as a number of traditional reinsurance transactions with certain risks removed through side letters.

Faraday is a member of the GR group, a wholly-owned subsidiary of Berkshire Hathaway.