Following an investigation in 2000/1, the FSA used its intervention powers to require EAC not to write new business and place in trust assets equivalent to its EC liabilities, including those to its policyholders. An independent trustee administers this trust and the FSA has been monitoring it closely. Regulatory action was also taken against the directors of EAC.
EAC and its directors disputed the actions and referred them to the Financial Services and Markets Tribunal. However, just before the hearing, EAC, the directors and the FSA agreed a basis on which to settle the dispute. As part of the resolution, the managing director of EAC, Mr David Wootton, has resigned from the board and has agreed not to seek a senior management role in the financial services industry in the UK. Mrs Lynne Green has resigned as chairman of the board. She will continue as a director of EAC but has undertaken not to apply for authorisation to perform a chief executive function in an authorised firm for three years. The other members of the board continue as directors and the regulatory action against them has been discontinued.
