MPs to grill man behind investigation into FCA

MPs have summoned the author of an inquiry into how the FCA handles market-sensitive news to give evidence tomorrow.

Simon Davis, a partner at Clifford Chance, was asked to carry out an independent review after Clive Adamson, the FCA executive in charge of supervising regulated companies, gave an interview to the Daily Telegraph, which caused £3bn to be wiped off the value of insurance company shares.

Mr Adamson, who has since announced he will leave the City watchdog, had announced his department would be planning an investigation into certain life assurance policies.

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Following the publication of his report tomorrow (Wednesday 10 December) Mr Davis will appear before the Treasury select committee at Portcullis House.

It is expected the report will be critical of the FCA’s handling of the announcement and its subsequent effects.

Andrew Tyrie, the chairman of the committee, said: “Serious concerns have been raised - not least in Parliament - about the way that the FCA has approached its responsibilities since it was formed in April 2013.

“The Treasury committee and others will need to examine in detail the FCA’s strategic review, and this consequent restructuring, to see whether they address the concerns raised”

“It is also crucial that the FCA learns any lessons that emerge from Mr Davis’s report.”

Mr Adamson, who also approved Rev Paul Flowers as chairman of the Co-operative Bank, has left the FCA as part of a shake up which means his department will be merged with the authorisations division.

Zitah McMillan, the FCA’s director of communications, will also be leaving the watchdog.