David Wootton, managing director of Eurolife Assurance Company (EAC), has resigned and agreed not to...
David Wootton, managing director of Eurolife Assurance Company (EAC), has resigned and agreed not to seek further positions in the financial services industry, following an investigation by the FSA.
Chairman Lynne Green has also resigned and has undertaken not to seek the role of chief executive within the industry for the next three years.
The two resignations are part of a compromise deal between the FSA and EAC. This was initiated by EAC, which wanted to avoid the cost and publicity of a long tribunal.
Wootton and Green said they have not been barred from the industry and that none of the allegations of the FSA have either been proved before a tribunal or admitted by EAC.
Plans for the full tribunal follow an investigation into EAC by the FSA, which this week stated it had been concerned 'the business of EAC was not being soundly and prudently managed.'
Following an investigation launched in June 2000, the FSA required EAC to stop writing new business in July 2001 and place assets in trust to cover its liabilities to policyholders.
These, Eurolife said, amounted to £265m.
Now, as part of the compromise, EAC has agreed to appoint a new managing director, the FSA said, and an independent non-executive director, at which point EAC can begin writing business again.
Among the concerns made by the FSA listed in the tribunal minutes was that Eurolife Fund Management used funds raised by the Eurolife Secured Bonds Isas 2005 to meet shortfalls in the property-linked funds of Eurolife's Gibraltarian subsidiary EAG. This resulted on 30 June 2001 in a £15.77m liability to repay these bonds, had they been redeemable.
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