FCA to probe 30 million insurance policies

FCA to probe 30 million insurance policiesFinancial Conduct Authority (FCA) has indicated that it is planning to launch an investigation into some 30 million policies that were sold by insurance companies from the 1970's to the year 2000.

The shares of insurance companies fell significantly after the report were released prompting the FCA to issue a clarification into the investigation. Some experts had accused the FCA of breaching its own rules by releasing information that is sensitive to the market.

UK's Chancellor George Osborne expressed his "profound concern" over the matter. Andrew Tyrie, chairman of the Commons Treasury select committee, called it "an extraordinary blunder". Some experts even raised questions over the legality of the head of Martin Wheatley, the head of the FCA. Even as there are concerns over the effects of the information on the share market, many customers said that such information must be released to the public for the benefit of the customers.

The FCA has said that it will undertake the review within this year. Wheatley pointed out that30 million people, or around two-thirds of UK adults, hold at least one credit card and the regulator is required to expose if the industry has wrong practices.