The FCA may face legal action from institutional investors after its disclosure of a probe into closed-book insurance policies, according to the Financial Times.
News of the probe published in the Daily Telegraph sparked a sell-off in insurer shares last Friday, with Phoenix, Legal & General and Resolution among the worst hit. Stocks recovered some ground when the FCA said the review would not be as onerous as feared, but that clarification did not come until six hours after the market opened. The FT now reports some institutional investors have consulted the Slaughter and May law firm over the potential for compensation. The firm reportedly said the incident represents "sufficient grounds for an investigation into potential market abuse". ...
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