It follows an unclear briefing from the FCA over a planned investigation into life insurers, causing their shares to fall sharply.
The announcement that legacy exit fees would be up for review, originally published in the Telegraph, caused shares in Phoenix to drop as much as 22%, while Resolution, Legal & General and Prudential fell 13%, 8% and 5.5%, respectively.
It took the regulator six hours to clarify the scope of the review, which eventually led to insurance companies paring losses.
The blunder triggered an independent investigation by Simon Davis, a partner at law firm Clifford Chance, the results of which will be revealed on Wednesday.
The report is expected to heavily criticise the actions of the regulator, according to the Financial Times, and several top executives, including chief executive Martin Wheatley, stand to lose their bonuses as a result.
The paper reports five top executives are specifically criticised, including Wheatley (pictured).
All nine members of the committee have had their bonuses postponed in April pending the publication of the report. Last year, the chief executive received an £86,000 bonus as part of total pay worth £628,000.
Ahead of the publication of the report, the FCA has announced a major restructure, just 18 months after replacing the old Financial Services Authority (FSA).
The watchdog confirmed yesterday a number of its senior members, including director of supervision Clive Adamson, will be leaving the business.
It also vowed to implement a “new way of working” next year, which will involve bringing together its current authorisations and supervision departments with its specialist supervision functions.
The regulator is set to creatw two new divisions in April 2015, which it said will allow for “clearer distinction between [the FCA’s] approach to the regulation of larger and smaller firms”.
The transition process will be led by current FCA enforcement head Tracey McDermott, who will subsequently head up the newly created divisions.
Earlier in 2014, the regulator gained additional responsibility for regulating consumer credit, meaning the number of firms that now come under the FCA has trebled over the past 18 months.
