Letter from the Chairman to the Chancellor on the supervisory work on the fair treatment of long standing customers in life insurance

The Rt Hon George Osborne MP
Chancellor of the Exchequer
HM Treasury
Horse Guards Road

                                                                                     1 April 2014

                                                                  Our ref:        CHAIR1047


Dear George

Thank you for your letter.

I would like to assure you that at the meeting last Friday, the Board of the FCA shared similar concerns to your own about the events themselves as well as the potential impact on the FCA’s and UK’s reputation in financial services.

As we announced last week, we intend to do everything possible to address that harm by setting up an independent inquiry.

I am determined to understand the FCA’s role in the events of Thursday and Friday. I am already in discussion with your officials on the arrangements and terms of reference for the review, which will be done by an external legal firm and will be independent of the Executive.

We will ensure that all the issues raised in your letter are reflected in the terms of reference of the inquiry.

I have coped this to Andrew Tyrie. I trust it is in order for it to be made public to sit alongside your letter to me.

Yours sincerely

John Griffith-Jones