The Financial Conduct Authority, under fire from insurers for its handling of an investigation into closed life policies, said today it will reduce its scrutiny of past practices in the annuities market, following the Chancellor's radical shake-up in the Budget two weeks ago.

Chris Woolard, director of policy, risk and research at the FCA, told MPs on the Treasury Select Committee that the authority had had to re-think its ongoing investigation into the annuities market in the wake of the Chancellor's move.