The Serious Fraud Office (SFO) will examine the events leading up to Independent Insurance's collapse, it confirmed last night.
The Serious Fraud Office (SFO) will examine the events leading up to Independent Insurance's collapse, it confirmed last night.
The SFO was asked to look at the case by the Financial Services Authority (FSA).
It usually investigates frauds involving amounts of more than £1m and the Financial Times reported this morning that it is expected to decide on whether to launch a full-scale enquiry within the next few days.
The Financial Times also said the SFO would try to establish whether there was a case against the directors, including the non-executives, of the company.
The FSA will also continue its own investigation.
Independent was put into provisional liquidation under the direction of Pricewaterhousecoopers (PWC) yesterday.
PWC is examining the possibility of setting up a scheme under which preferential creditors will be paid first, while non-preferential creditors will then be ranked equally.
The FSA has said that the Policyholders' Protection Act 1975 (PPA) will provide for policyholders' claims to be met from funds gathered by a levy on the insurance industry.
Insurance claims arising from compulsory cover will be covered to 100% while 90% of other claims will be covered.
However, claims by businesses, except for those under compulsory insurance policies, will rank with the other creditors of the company.
The FSA has asked policyholders not to contact the Policyholders' Protection Board (PPB) directly,
