Former Equitable Life chief executive and appointed actuary Chris Headdon has been banned by the FSA from holding senior roles in financial services companies until May 2010.
Headdon's ban stems from a failure to disclose to the FSA a side-letter to an agreement with the Irish European Reinsurance Company that allowed for the cancellation of an £800m reinsurance treaty.
Cancellation of the deal with Ireco would have significantly weakened Equitable's balance sheet.
FSA director of enforcement Andrew Procter says: “Mr Headdon should have provided information to the FSA about the side letter to the reinsurance contract and as a result of his failure to do so the FSA has decided he is not fit and proper. The FSA sets high standards by which we judge senior management. This includes the requirement that individuals deal with the FSA in an open and co-operative way.”