Financial Conduct Authority criticised by MPs over insurance industry review

Treasury select committee says FCA created false market for shares by briefing media of imminent report

The Financial Conduct Authority made serious errors last year over the handling of of review of the life insurance industry, according to a report by a committee of MPs, which questions whether the City regulator is suffering from a systemic weakness in its culture.

In its last report before parliament is dissolved for the general election, the Treasury select committee said the City regulator had lost sight of its objective to make sure markets work well and had not acknowledged the problems in the way it operates.