The FSA will review its investigation and enforcement procedures following criticism from the Financial Services & Markets Tribunal.
In its ruling in the recent Legal and General (L&G) endowment mis-selling case, the Tribunal severely criticised the FSA's regulatory decisions committee (RDC). The RDC, it said, had made a "significant error" in relying on a report issued by PricewaterhouseCoopers (PWC).
Experts have also criticised the role of the RDC and its relationship with the FSA. Reynolds Porter Chamberlain senior solicitor Harriet Quiney said the L&G case had shown how the relationship between the committee and the FSA could create a breeding ground for "suspicion and mistrust".
"The problem comes when the RDC relies too heavily on the FSA for its evidence. A firm has no direct access to the RDC, and then - in my experience - evidence can become inaccurate," she said.
Earlier this month the tribunal decided to reduce the £1.1m fine it slapped on Legal & General for mis-selling mortgage endowments.
The RDC had not scrutinised the claims thoroughly before hauling L&G over the coals, it said.
Quiney pointed out that in L&G's case, the PWC report was misinterpreted to make L&G appear guilty of the charges in a large proportion of cases. In fact, she said, the sample was a minority of 250 policies.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
