Life insurers and pension providers saw shares tumble after Chancellor George Osborne said the rules on investing in annuities would be relaxed.
Annuity provider Just Retirement group plummeted 32%, while Partnership Assurance Group, a provider of non-standard annuities for individuals with medical conditions, shed 10% shortly after the announcement.
Legal & General fell 7%, while Standard Life, Prudential and Aviva all fell by between 2% to 4%.
Bookmakers also suffered as Osborne clamped down further on fixed-odds betting terminals.
Ladbrokes fell 12%, while William Hill dropped by 6%.
However Hargreaves’ shares jumped 6% after the ISA allowance changes, which also saw the cash ISA merged in to the stocks and shares ISA.
The FTSE 100 index as a whole was broadly unchanged, down 0.2% for the day.
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