Watchdog under fresh attack over II

By THIS IS MONEY
Updated:

 

THE Financial Services Authority has come under fresh attack over its regulation of the insurance industry, with textile maker Worthington Group saying it appeared the FSA had to take some of the blame for the losses faced by the company as a result of the Independent Insurance collapse.

Worthington said it was still owed £3m by Independent as compensation for a fire at its Macclesfield premises in May last year. It is now one of the insurer's unsecured creditors, who are expected to recover little or nothing from the liquidation.

'In the UK we expect our insurers to be properly regulated and deal with their clients with competence and integrity and this does not seem to have been the case with us,' Worthington said.

Chief executive John Taylor said Worthington planned to join the class action against Independent's advisers, which include auditors KPMG, and possibly the FSA.

Worthington said the Macclesfield cost had resulted in the dividend being halved to 0.05p a share for the year to 31 March. The company posted a pre-tax profit of £1.6m, from a £13.5m loss previously.

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