The Financial Services Authority has responded to allegations from the French regulatory that it fai...
The Financial Services Authority has responded to allegations from the French regulatory that it failed to act on a tip-off on Independent Insurance, by saying the information it received earlier in year was "nothing it didn't already know" about the now defunct insurer.
Far from ignoring the status of Independent, the FSA claims it contacted both Independent and the French regulator having recognised a problem in the group's capital base early last year.
The FSA spoke to Independent over its planned expansion saying its concern centred on the group's ability to raise new funds.
THE FSA says it was in contact with the group long before the French authorities contacted the UK regulator.
A communication to the FSA from the French in January this year documented provisional concerns about a sister company of Independent, including the possible under-estimation of claims.
Although the letter brought nothing new to light, the FSA met with Independent later that month to discuss the French sister group.
Regulatory officials said the company explained they were in discussions with the French authorities with regard to how it assessed the values of the probable claims and collected copies of detailed responses to the French authorities.
The FSA goes on to say it wrote to the French in March in order to relay their understanding of the financial status of the life group's sister firm later meeting the authorities in Paris to provide information on the parent group.
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