The Treasury has announced an independent inquiry into Equitable Life to be conducted by Lord Penrose.
The terms of reference of the newly announced inquiry are the circumstances leading to the current situation of the Equitable, and to identify any lessons that can be learned about the conduct, administration and background of life assurance business.
A report dealing with these matters will be handed to Treasury ministers.
Penrose is independent of the Government. He served as the first full time commercial judge in Scotland dealing with specialist commercial matters between 1994 and 1998.
The inquiry will go much further than the FSA's review looking at its role as regulator of the life industry and will have more teeth than the Treasury Select Committee's report.