The FSA is investigating Prudential’s failed $35bn bid for Asian life assurer AIA.
According to a Financial Times report, Prudential has been ordered by the regulator to commission law firm Clifford Chance to conduct an inquiry amid concerns over the management of the AIA deal.
An external skilled persons report is focusing on Pru’s investment advisers, Credit Suisse, JPMorgan and HSBC to find out if they discharged their duties properly.
Pru’s bid for AIA was plagued by communication problems from its launch in March last year. It took over two months before investors could see full details at the launch of a $20bn rights issue.
The deal failed after Pru shareholders forced the firm to renegotiate the price.
A Prudential spokesman says: “As a large financial services group we have a constant dialogue with our principal regulator on a wide range of issues. As a matter of policy we do not comment publicly on any such discussions.”
The FSA refused to comment.
In August last year, Prudential revealed the failed AIA bid cost the company £377m. Group chief executive Tidjane Thiam then ruled out a further bid saying the insurer would not be looking at further large-scale acquisitions.