FSA investigates Resolution CFO and directors

Resolution Ltd chief financial officer Jim Newman is among senior executives
under investigation by the Financial Services Authority (FSA) into a period
during the company’s eventual £5bn sale to insurance group Pearl.

Three Resolution Ltd executives – Clive Cowdery, Jim Newman and Ian Maidens –
are being investigated by the FSA, according to reports in The Times
today. The company’s chief executive, former FSA chief executive John Tiner, is
understood not to be part of the investigation.

Resolution Ltd stated that the FSA is examining ‘certain actions’ undertaken
by the three executives during the period between October 2007 and May 2008. The
inquiry is believed to be at an early stage.

Resolution Ltd was formed after the takeover of Resolution plc by Pearl that
was concluded in August 2008. Resolution plc had been set to merge with Friends
Provident in October 2007 when Pearl made a £4.5bn bid for the company. The
takeover battle intensified when Standard Life entered the fray shortly
afterwards. The three directors under investigation subsequently created a new
entity, Resolution Ltd, which raised £600m from a listing on the stock market in
December 2008.

The FSA investigation will prevent Resolution Ltd from completing any
acquisitions until the investigation is completed. The FSA had already
reportedly launched an inquiry into the takeover of Resolution plc over
suspicion of market abuse by a variety of parties involved in the bidding

Newman joined Resolution plc in 2005 from Aviva where he was finance director
of the Norwich Union unit. He was promoted to group finance director at
Resolution plc in March 2007.

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