An independent inquiry said last week the Financial Conduct Authority (FCA) was wrong to brief a reporter about the review and "seriously inadequate" in the way it dealt with the ensuing sell-off in insurance shares.
The report was critical of FCA Supervision Director Clive Adamson who announced days before the report was released that he would be leaving the regulator as part of structural changes.
Adamson apologised on Tuesday during an appearance before a parliamentary committee that scrutinises the financial services industry.
"I absolutely regret what happened. I take responsibility for my part in that and I apologise," Adamson said.
"I think we all accept it is a very serious incident and I think we have all realised the influence and power the organisation (FCA) does have."
In March, panicking investors dumped shares in Aviva, Legal & General and Prudential after Adamson, the FCA's head of supervision, was quoted in The Daily Telegraph as saying the regulator would investigate if those locked in pension pots had been treated fairly.
Investors feared insurers would face huge compensation bills, but the FCA took six hours after the market opening to clarify that the review did not intend to look into mis-selling.
Shares in insurers fell between 7 to 9 percent on March 28, before recovering some of their value after the FCA clarification. Shares in Aviva, Legal & General and Prudential now stand above lows seen on that day.
(Reporting by William James; editing by Jason Neely)
Culled from Yahoo News.
Reuters.
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