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.