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Treasury and FSA launch consultation on EU insurance

The Treasury and the FSA have launched a consultation on the UK’s proposals to reduce the administrative burden on insurance firms operating in the EU.

The proposals aim to encourage more effective group supervision across EU insurers and ultimately provide better value for consumers.

They represent the UK’s contribution to the development of prudential regulation of the EU insurance sector through the Solvency II process.

A key focus of the Discussion Paper are proposals put forward by chancellor Alistair Darling for the creation of colleges of supervisors.

Under these proposals EU regulators would work more closely through supervisory colleges, improving the effectiveness and efficiency of their supervision of cross-border insurance and reinsurance groups.

The UK Government has proposed that these colleges would operate for all significant EU cross-border financial institutions, irrespective of legal form, providing a structure for the sharing of information and the cooperation of supervisory authorities in the EU.

The Government says these proposals show its determination to continue in its proportionate and risk based approach to EU financial services rules.

It says that this will contribute to the competitiveness and modernisation of the insurance sector and will bring benefits to consumers throughout the EU with more innovative and better value insurance products.

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