View more on these topics

L&G warns over regulatory intervention

Legal-and-General-LG-700.png

Legal & General is calling for the Prudential Regulation Authority’s remit to be scaled back as the insurer says the regulator has become too interventionist in its approach.

The Financial Times reports the comments have been made as part of a submission to a Treasury select committee inquiry into Solvency II rules post-Brexit.

L&G argues Solvency II rules mean the PRA is “effectively overruling the judgement of the board” when it comes to setting capital requirements, and is taking a more “directive” approach when approving transactions.

The insurer says: “Boards do not feel empowered to make commercial decisions without reference to the regulator.”

L&G wants to see audit firms take over work related to capital requirements, to allow the PRA to focus on “the more strategic issues which impact its statutory objectives.”

The PRA declined to comment.

Recommended

Legal-and-General-LG-500x320.jpg

L&G completes £1.1bn Rolls-Royce pension buyout

Legal & General has completed its largest pension risk transfer deal this year with the £1.1bn buyout of a Rolls-Royce pension scheme covering over 11,000 members. The buyout relates to the Vickers Group pension scheme, after Rolls-Royce acquired engineering group Vickers in 1999 in a £576m deal. Rolls-Royce has been working with Legal & General […]

Toby Strauss, Scottish Widows

Ex-Scottish Widows boss to join L&G

Former Scottish Widows chief executive Toby Strauss has been appointed to the board of Legal & General as a non-executive director. Strauss will join the L&G board on 1 January, and will sit on the provider’s nominations, audit and risk committees. Prior to working at Scottish Widows, Strauss has also held the role of chief […]

Legal and General LG 480
1

L&G profits surge 44% after annuity deal

Profits in Legal & General’s retirement business grew 44 per cent in the first half of the year, driven by annuity book deals and equity release sales. Half-year results, published today, show pre-tax profit rose from £292m in the first six months of 2015, to £469m this year. Bulk and individual annuity sales were down, […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

Bonds going bust? Not so fast….

In recent months bond bears have been reinvigorated, and market commentary suggesting “the end of the bond (bull) market is near” has become commonplace. We think these comments are premature. Explaining the global government bond sell-off October has seen renewed pressure on global government bonds, initially provoked by a Bloomberg article suggesting that the ECB […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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

  1. This Government and its regulators are being ever more intrusive in commercial matters. It really is a bit thick when you have politicians telling a business how it ought to be run, when the only experience most MPs have is of running a bath or their nose.

    In addition to L&Gs complaints, which are mainly confined to the financial sector, we also have the intrusion into the pay of CEOs and other directors and the enrolment onto boards of worker representatives. That these particular suggestions are just flim-flam and really only apply to PLCs is something that has not been fully scrutinised.

    How can these be applicable to private companies? I can’t see how they can. If they do, what encouragement to entrepreneurship? If I’m right then (for example) they would whistle in the wind when it came to Arcadia – that isn’t a PLC. As far as Sports Direct is concerned if they brass off Mike Ashley he could well take the company private.

    In the case of one of the highest paid UK executives – Martin Sorrell of WPP – he could easily just up sticks and relocate to the USA where he has substantial interests.

    What of the CEO of Shell? This is Anglo Dutch – so our Government could be told just to take a hike. BP? Well if Bob Dudley is hog tied he could go and work for another oil major – after all it is a globally competitive industry.

    Then the ratio between CEOs and average workers will look pretty good if you are examining a hedge fund!

    Stupid, stupid, stupid. Populist, unworkable politics. What else would you expect from the numpties in Westminster? They really need to understand what Capitalism is.

Leave a comment