FSA investigates former Resolution directors
The Financial Services Authority (FSA) is investigating circumstances surrounding the sale of closed life consolidator, Resolution, to Pearl Assurance.
When the deal was announced in November of 2007, Pearl (a rival closed life fund consolidator) was Resolution’s largest shareholder.
Its victory followed a takeover battle lasting months in which Pearl finally triumphed over Standard Life.
The regulator is now investigating Resolution’s former chairman, Clive Cowdery, and other former directors of the company.
According to reports, the FSA is examining events that occurred between October 2007 and May 2008; the point at which the acquisition was completed.
Completion of the transaction had been scheduled for the beginning of February 2008 but was delayed by the FSA.
The terms of the merger of the UK’s two largest closed life fund consolidators included plans to free-up capital from Resolution’s life funds and the FSA had raised questions at to whether policyholders would lose out.
Having sold his 3% stake in the business, Mr Cowdery went on to create a new financial services venture.
November 2008 saw the £1 billion flotation of acquisition vehicle, Resolution Limited, which, according to Mr Cowdery, will focus on acquiring firms with restructuring potential in the banking, life insurance and asset management sectors.
Category: Financial Services Authority News, Insurance News, Resolution News
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