FCA executives in the spotlight over regulatory briefing which damaged insurance companies valuations
The probe into how the FCA allegedly blundered with an announcement that wiped millions off the stock market valuation of insurance giants such as Aviva and Legal and General has stepped up.
According to Sky News, FCA executives are mulling over the findings before the draft report is published. The process, known as Maxwellisation, allows bosses to scrutinise critical reports and respond before publication.
The report was ordered by chancellor George Osborne after the FCA briefed the Daily Telegraph about a proposed supervisory work on the fair treatment of long-standing customers of life insurance companies.
Investors hit the panic button after the briefing in March, selling shares in insurance companies.
The FCA has hired law firm Kingsley Napley, the lawyers who acted for rogue trader Nick Leeson, to handle their case, Sky News reports.
Simon Davis, a partner at law firm Clifford Chance, is heading the review.