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| FCA head Martin Wheatley admits: 'Not our finest hour' | FCA head Martin Wheatley admits: 'Not our finest hour' |
| (35 minutes later) | |
| The head of the city regulator, the Financial Conduct Authority (FCA), has said the organisation's behaviour last week will be fully investigated. | The head of the city regulator, the Financial Conduct Authority (FCA), has said the organisation's behaviour last week will be fully investigated. |
| Martin Wheatley, the FCA's chief executive, admitted the leaked launch of an insurance industry inquiry was "not our finest hour". | Martin Wheatley, the FCA's chief executive, admitted the leaked launch of an insurance industry inquiry was "not our finest hour". |
| The information caused some insurance stocks to plunge by 20% on Friday. | The information caused some insurance stocks to plunge by 20% on Friday. |
| The FCA's investigation will look at whether the information released was market-sensitive. | The FCA's investigation will look at whether the information released was market-sensitive. |
| Later on Friday the FCA was forced to issue a clarification of its plans to examine so-called "legacy" pension and insurance policies, which trap policy-holders with large exit fees. | Later on Friday the FCA was forced to issue a clarification of its plans to examine so-called "legacy" pension and insurance policies, which trap policy-holders with large exit fees. |
| Mr Wheatley told the BBC that he would not resign from his position - as some have demanded - but would await the outcome of the FCA's enquiry. | Mr Wheatley told the BBC that he would not resign from his position - as some have demanded - but would await the outcome of the FCA's enquiry. |
| "I'm not in a good position," he said. | "I'm not in a good position," he said. |
| "I'm not defending that position, but there are processes that have to be gone through," he told Radio 4. | "I'm not defending that position, but there are processes that have to be gone through," he told Radio 4. |
| Criticisms | Criticisms |
| The news that the FCA was going to investigate pensions, life insurance and endowment policies issued between 1970 and 2000 was leaked to a national newspaper. | The news that the FCA was going to investigate pensions, life insurance and endowment policies issued between 1970 and 2000 was leaked to a national newspaper. |
| It was originally due to be publicised in the FCA's annual business plan three days later. | It was originally due to be publicised in the FCA's annual business plan three days later. |
| However, after the newspaper article was published, it took the FCA six hours to issue a clarification. | However, after the newspaper article was published, it took the FCA six hours to issue a clarification. |
| By that time, the share prices of several big insurers had fallen sharply. | By that time, the share prices of several big insurers had fallen sharply. |
| Mr Wheatley said all the details would be examined in the forthcoming internal inquiry. | Mr Wheatley said all the details would be examined in the forthcoming internal inquiry. |
| "There are a number of things that need looking into, and we've got an investigation that will do that," he said. | "There are a number of things that need looking into, and we've got an investigation that will do that," he said. |
| "I'm sure we will be very upfront about taking criticisms on board, and what we need to do differently," he told the BBC. | "I'm sure we will be very upfront about taking criticisms on board, and what we need to do differently," he told the BBC. |
| Commons Treasury committee chairman Andrew Tyrie said the leak may have "damaged consumer confidence". | Commons Treasury committee chairman Andrew Tyrie said the leak may have "damaged consumer confidence". |
| Conditions | |
| So what are the implications for policy-holders who find themselves unable to get out of expensive policies they took out in the 1980s and 90s? | |
| Having learnt the harsh lessons of premature publicity, Mr Wheatley was keen not to prejudge the outcome of the inquiry. | |
| He did say the FCA inquiry would look at the conditions that were set at the time the policies were taken out, whether they were clear, and whether they were fair. | |
| However - and this will be of comfort to the industry - he suggested that there would not be harsh penalties imposed for mistakes in the past. | |
| "We would not be retrospectively imposing today's standards on activities of 10, 15 or 20 years ago," he said. | |
| It is not yet known when the internal FCA enquiry will make its conclusions public. |