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FSA Chairman pays price for Equitable

The Baird report, published on 17 October, criticises the Financial Services Authority for failings in its regulation of Equitable Life, the mutual life assurance society beset by troubles arising from its past sales of policies with Guaranteed Annuity Options (GAOs). The study focuses on the FSA’s role between the beginning of 1999 and December 2000 when Equitable closed for new business. It concludes that there were instances “when both the prudential and the conduct of business regulators did not spot issues to be addressed or having spotted them, failed to follow them up” and cites poor communication and coordination between the two arms as a major cause.