Financial Conduct Authority criticized for breaking its own rules
The Financial Conduct Authority, a financial regulatory body in the United Kingdom, may have mishandled its review of the life insurance industry last year, according to a report from a committee of members of the British Parliament. The report is the latest development in ongoing controversy regarding the Financial Conduct Authority’s plans to review the life insurance sector. This review has had a significant impact on the sector, with the regulatory body wiping some $4 billion off the value of insurance company shares.
Report shows that regulatory body may have mishandled its review of the life insurance industry
According to the report, the Financial Conduct Authority breached its own regulations while reviewing the life insurance sector. The report suggests that the regulator created a false market in shares, which was done by withholding clarifying information concerning its review of the insurance sector and the action it took on shares. British officials claim that the regulatory body would have issued harsh fines against other firms that would have acted in a similar fashion.
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Problems with the Financial Conduct Authority may persist
British officials are concerned that problems with the Financial Conduct Authority may still exist. The report suggests that the regulatory body may not be fully aware of the breach of its own rules, which may mean that little will be done to resolve the issue in the future. The agency has accepted the criticism that it received in the past concerning its practices and has said that it will be taking steps to learn from the mistakes of the past in order to become more capable in the future.
UK life insurance sector continues to show strong performance
The life insurance industry in the United Kingdom is quite large, with nearly 400 companies offering life coverage to consumers. In 2013, more than $3 billion was paid to the beneficiaries of life insurance policies throughout the country. There have been some concerns that insurance benefits are not making their way to beneficiaries, however, which is a factor that lead to the review of the life insurance industry.