FSA and payment of redress from WP funds

Insurance companies and life offices using inherited estates and orphan assets to pay redrees AKA compensation for past alleged misselling.

This is all too late, the damage has been done. If the money had not been taken away from policyholders the shortfalls would have been smaller or even non-existent, it therefore follows that IFAs would not have paid out for the acts or omissions of others, also add the LAUTRO 12 issue which compounds the problem.

The FSA now says it was wrong but the endowment review is over, was it anything to do with the financial stability of the life offices which Howard Davies mentioned in his Washington speech?
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4061196.ece