One year on, will the letters be repeated?

clock •

Today marks the anniversary of the FSA's letters to heads of insurance companies, inviting them to apply for waivers on minimum solvency requirement rules and head off the threat of a complete UK stockmarket collapse.

The FSA would, of course, never admit that was the intent behind the letters, but with reports suggesting some insurers were actually making more money by shorting stocks than going long, it was clear that a downward spiral had to be averted. The FTSE 100 index did crash another 165.7 points to close at 3,287 on 12 March 2003, the day after the letters were sent, but from there on in it has been plain sailing for the masters of UK pension funds and other institutional investors. Arguably, the FSA that day did a favour to all 13 million UK retail investors, and the millions of others w...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

PA Awards 2027: Last chance - entries close at midnight tonight

PA Awards 2027: Last chance - entries close at midnight tonight

The 22nd Professional Adviser Awards will take place in London next March

Professional Adviser
clock 18 September 2026 • 1 min read
Multi-Asset and MPS Roadshow: Last chance to join PA in Harrogate or Warrington

Multi-Asset and MPS Roadshow: Last chance to join PA in Harrogate or Warrington

Hear from Aberdeen, Aviva Investors, Clever, Downing, Fidelity, Quilter Cheviot, Rathbones

Professional Adviser
clock 08 September 2026 • 1 min read
Two including former police officer charged in connection with £720,000 investment fraud

Two including former police officer charged in connection with £720,000 investment fraud

Due to appear at Westminster Magistrates’ Court

Sophia Panayi
clock 04 June 2026 • 1 min read