The state of regulation of the life industry requires a drastic overhaul according to the FSA's report into its handling of the Equitable Life affair.
The report, written by FSA director of internal audit Ronnie Baird and covering the period between from the beginning of 1999 until the end of 2000, was published today by the Treasury after it received it from the regulator last week.
There had been concerns it would not see the light of the day because the Treasury doesn't want to prejudge the outcome of Lord Penrose's independent review of Equitable underway at the moment.
The Treasury downplayed the significance of the report's findings, saying it is just one piece of the larger picture. Treasury Economic Secretary Ruth Kelly says the report will be part of the evidence Lord Penrose considers.