View more on these topics

Insurance experts back PRA attack on Solvency II

Insurance experts have backed Prudential Regulation Authority executive director Andrew Bailey’s attack on the“staggering” costs of Solvency II and the “shocking” EU regulatory process.

In February, Bailey wrote to parliamentary commission on banking standards chair Andrew Tyrie claimingthe directive has become “lost in detail and vastly expensive” and will cost the industry billions of pounds to implement.

The Solvency II process began 10 years ago and will introduce EU-wide prudential regulation for insurance firms with higher capital and risk controls.

Bailey estimates consumers will see price rises of 0.1 per cent, insurance firms will see ongoing costs of £200m a year, on top of £400m spent since 2008, while the regulator is set to spend between £5m and £7m a year.

The Treasury select committee is planning to investigate Solvency II after Bailey called for a parliamentary inquiry.

Royal London head of corporate affairs Gareth Evans says: “Solvency II has been overly prolonged with an enormous cost to firms that will ultimately be borne by consumers.”

Eversheds partner Michael Wainwright says: “The delays and lack of preparation that have dogged Solvency II suggest it could become hopelessly out of date and unfit for purpose.”

Zurich UK Life principal of Government and industry affairs Matthew Connell says: “Solvency II shoudl be reviewed and lessons learned.”



Cable demands quick RBS prosecution decision

Business secretary Vince Cable has written to Scottish legal authorities to push for a fast decision on whether to prosecute former Royal Bank of Scotland directors. The BBC reports Cable wants a quick resolution to the situation to maintain public confidence. RBS required a £45.5bn public funded bailout in October 2008. In December 2011, an […]


Adviser Len Warwick dies

Warwick Butchart Associates chairman and founder Len Warwick has died at the age of 68. Warwick was a founding board member of the Association of Independent Financial Advisers and former Life Insurance Association president. He founded Warwick Butchart Associates in 1981 and served as a director of the Securities and Investment Board. Warwick, who was a regular […]


Halifax to pay FTB stamp duty on homes up to £250k

Halifax Intermediaries has offered to pay full stamp duty bills for first-time-buyers on properties worth up to £250,000. The Stamp Duty Special deal will run from today until 7 July and includes a 60 per cent LTV two-year fix at 2.54 per cent and an 85 per cent LTV two-year fix at 3.84 per cent. Halifax […]


Letter to the editor: Long-running court battle continues

Money Marketing readers may recall my long-running fight against the FSA, which I am suing under the Protection from Harassment Act 1997 because the FSA, FSCS and FOS worked together to unfairly progress loss assessments and solicit pension complaints from former clients. The FSA has twice applied for the case to be dismissed, despite a […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 1st May 2013 at 7:47 pm

    The sooner the UK withdraws totally from the EU the better. Then we can get on and run our own country according to our own laws and rules, free of interference from Brussels.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm