Yorkshire textile manufacturers, who are owed £3m by Independent Insurance, have hit out at the Financial Services Authority (FSA).

Worthington Group finance director Stephen Fletcher said the £3m claim was the result of a fire at its Macclesfield premises in May 2000.

He had just finalised the claim when Independent went into provisional liquidation. He said the group had no way of recovering the money except as an unsecured creditor of the failed insurer.

Fletcher questioned the FSA's role in monitoring Independent.

“They (the regulators) are meant to be quite strict, so to have nothing in the pot to pay people does beg a few questions.”

Fletcher said the company was considering joining the class action against those involved in the insurer's collapse, but at the moment was concentrating on recovering from the loss.