FCA senior executives have reportedly decided to defer their bonuses until a probe into the handling of media reports surrounding its review into closed book policies is completed.
According to Sky News, nine senior executives, including chief executive Martin Wheatley, have said they will not accept any bonuses until the investigation is completed.
The FCA refused to comment and said it would reveal details of individual pay in its annual report.
Sky News reports the nine executives are expected to receive their bonuses once the enquiry is completed.
They include director of supervision Clive Adamson; director of markets David Lawton; general counsel Sean Martin; director of enforcement and financial crime Tracey McDermott; director of communications Zitah McMillan; director of authorisations Victoria Raffe; chief operating officer Lesley Titcomb; and director of policy, risk and research Christopher Woolard.
On 28 March, the Daily Telegraph first reported the regulator was concerned legacy customers are locked into poor investments by steep exit fees and insurers may be “exploiting” them by levying large fees to subsidise other parts of the business.
The report prompted several insurers’ share price to plummet, including Resolution, Legal & General, Aviva and Phoenix.
The FCA was forced to issue a clarification statement at 2.30pm explaining the scope of the review in more detail. At 6.30pm, the regulator issued a further statement saying it would carry out an investigation into its handling of the issue.
In April, Wheatley admitted the regulator’s handling of media reports on the issue was “not the FCA’s finest hour” and that it was right that the watchdog had come under scrutiny.