The FCA has spent a total of £3.8m on carrying out the inquiry into where it wrong on announcing its review of closed book business.
Following the findings of the inquiry, the regulator has confirmed that chief executive Martin Wheatley, director of supervision Clive Adamson, director of communications Zitah McMillan and director of markets David Lawton will not be receiving a bonus for 2013/14.
Clifford Chance partner Simon Davis has today published his report into how the FCA bungled its announcement that it was to carry out a thematic review into closed books.
The report is critical of senior management’s role of the episode in March, where a briefing to the Daily Telegraph and the subsequent report sent insurers’ share prices tumbling.
The regulator sets out the cost of the inquiry as follows:
Including VAT, the total cost of the inquiry is £3.8m.
Davis found that Wheatley was disadvantaged due to the failures of Adamson, Lawton and McMillan who failed to escalate the issue to him in time.
Following the report’s findings, the FCA’s non-executives have decided the four senior managers will not receive a bonus for this financial year.
Wheatley has lost a maximum bonus of £115,000, while Adamson has lost a bonus of up to £72,750. Adamson resigned earlier this week and will be put on six months gardening leave from January.
Five other members of the executive committee have had their bonuses reduced by 25 per cent. The regulator says “other disciplinary action has been completed as appropriate”.
The FCA says: “We are grateful to Mr Davis for the care and detailed consideration he has taken with this comprehensive report.
“As a regulator we recognise we must hold ourselves to the highest standards and we have learned a great deal from this report. We will do our utmost to ensure that a situation like this will never happen again.”