Partnership slumps in trading after being linked to FCA probe
PARTNERSHIP Assurance, the recently floated life insurer, plunged in trading yesterday after it was linked to a Financial Conduct Authority (FCA) probe into potential rule breaches over adviser payments.
On Wednesday the FCA said two life insurance firms were being investigated over suspicions they had arrangements in place that could influence advisers, contrary to new rules introduced in January.
Partnership was yesterday named as one of the firms by the Financial Times, leading its share price to plunge over seven per cent by the close of trading.
The FCA kicked off enforcement proceedings against the two firms after reviewing service and distribution agreements of 26 life insurers and advisory firms. It did not name the two firms it had started enforcement proceedings against. The FCA declined to comment yesterday.
Partnership said: “As a matter of policy we never comment on conversations between ourselves and the FCA or the [Bank of England’s] prudential regulation authority.”