Mishandling Likely Cause of FCA Supervision Director’s Step Down
In March of this year, the Financial Conduct Authority (FCA) found itself in the midst of a public relations crisis when British media leaked a story that the regulator would alter the terms of 30 million life-insurance policies, causing their values to plummet. The announcement caused major fallout in the insurance stocks market and solicited criticism from insurance providers, politicians, the media, the stock market and consumers, triggering a £3 billion loss in insurance firm market values. The FCA’s actions were part of a probe into the life insurance industry.
FCA Director of Supervision, Clive Adamson, was a key player in the insurance probe. Adamson, a seven year FCA veteran, plans to step down in the upcoming months, but has not confirmed that his exit was prompted by the March announcement. His departure announcement is, however, uniquely timed, given that Clifford Chance’s investigation into the insurance probe mishandling is scheduled to be released in a week.