FCA Director of Supervision Clive Adamson had just quit his post at the Financial Conduct Authority this month. He said this is to help the regulator avoid distractions after his methods were critiqued, especially his handling of changes in the insurance industry.
He told an all-party group that he had already considered leaving the FCA before the end of his term by 2016. He said he left because he did not want to be part of the story.
Adamson quit before the regulator published a report from March, which explained how £6 billion became removed from the stock market value of insurance companies. This fall in stock market values was due to Adamson’s statement that the Financial Conduct Authority plans to review 30 million policies decades ago and is considering dropping policy exit fees.
Treasury Select Chair Andrew Tyrie accused the FCA for creating a disorderly market because of its extraordinary blunder. Chancellor George Osborne had also written to the FCA Chairman John Griffith-Jones to issue a disciplinary action against his staff.
Despite the negative consumer confidence insurance companies and banks have due to PPI mis selling and other troubles, insurance companies are buoys in the fragile recovering economy of the United Kingdom.
City Lawyer Simon Davis, who conducted a £3 million investigation into the incident said that it was obvious an insurance review devalued the major insurance firms in the country.