Calls for FCA chief to step down after 'blunder'

The Sunday Times reported that the Association of British Insurers is expected to write to George Osborne to complain about how details of a major upcoming investigation into life companies were leaked.

It was reported last week that the regulator was to review the contracts of long-standing customers in life insurance, pension and endowment contracts. The news led to sharp falls in the share prices of several large insurance companies, including Aviva, Legal & General and Prudential.

The Sunday Times reported sources at several UK insurance firms had told it they believed Wheatley's position at FCA chief had become untenable.

Over the weekend Andrew Tyrie, chairman of the Treasury Select Committee, said the FCA seemed to have made an ‘extraordinary blunder’.

He added:

"It is crucial that we have a full and transparent explanation about how such an apparently serious mistake came to be made by our financial services watchdog - the body appointed by parliament to enforce high standards of conduct."