Labour MEP and Solvency II rapporteur Peter Skinner has hit out at Prudential Regulation Authority demands for a parliamentary inquiry into the directive as it could lead to ”EU-bashing”.
PRA executive director Andrew Bailey has branded the EU process for Solvency II “shocking” and called for the UK parliament to investigate. Treasury select committee chairman Andrew Tyrie says he takes Bailey’s criticisms “very seriously” and the TSC will look at the directive in coming months.
Bailey said the directive has become “lost in detail and vastly expensive” while the EU makes “no allowance for value for money”.
Skinner says: “For a Parliamentary enquiry to focus on process without discussing the complexity and breadth of effect of such a comprehensive form of regulation might be seen as EU bashing rather than a real attempt to deliver real answers.
“Solvency II is the most modern form of insurance regulation probably anywhere in the world and sets the trend for changes to other regimes which are also turning towards a similar risk-based approach.
“Having a common approach to insurance regulations around the world should in all prospect prevent regulatory arbitrage and open markets which otherwise might remain closed or protected because of local regulatory practices and costs.”
Skinner blames delays to Solvency II on national Governments and regulators rather the EU process.