Claims it will be of little assistance

The chief executive of the Isle of Man Financial Services Authority has declined to attend a UK parliamentary sitting tomorrow (Wednesday) in which the body is expected to be accused of regulatory failure.

Karen Badgerow, who was recently appointed, has informed Westminster of her decision, saying it would be of little assistance.

A group of MPs are investigating the collapse of a Scottish Power cashback structure which was insured by companies on the Island, leaving 625,000 UK customers out of pocket.

The matter was brought to the attention of the Insurance and Pensions Authority in December 2011.

The IPA is now part of the Financial Services Authority after it merged with the Financial Supervision Commission.

The case throws up serious questions about the level of regulation in the Island with one liquidator accusing the IPA of ‘regulatory failure’ and another concerned by an ‘apparent lack of appetite from the FSA to properly look into serious allegations’.

Mrs Badgerow, who says the FSA is committed to taking any appropriate action, succeeded David Vick when he retired in November. He’d been chief executive of the IPA since 2002 and was awarded the MBE in the New Year honours list for services to the Island's insurance and pensions industry.

The All-Party Parliamentary Group sits at two o’clock tomorrow afternoon.

The matter has also been referred to the UK Serious Fraud Office.