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G20 Fine words need to be followed by sensible measures

Responding to agreements made at the G20 London Summit, Stephen Haddrill, the ABI's Director General, said:

"We welcome the G20 statement which made valuable commitments to ensure an open world economy, strong markets and effective financial institutions.

"The important challenge now is for national governments and regulators to follow fine words with sensible measures which ensure effective regulation and prevent protectionism. The EU has a vital role to play here in protecting the single market. The EU and the Financial Stability Board will need to stick to the principles of modern markets and not try and reinvent older forms of regulation that belong to past eras. The UK and London, in particular, have most to lose if the fine words of today become the shackles of the future. With the ABI's members controlling 15% of the UK's capital, the ABI will be vigilant in monitoring how our authorities rise to this challenge."

The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU.

Remuneration (As per Financial Stability Forum proposal)
"We welcome the moves to ensure remuneration encourages long-term value creation and does not lead to excessive risk taking. We must stress the need to avoid the possibility of reward for failure. The FSA's proposals are already aiming to do this. Any new steps to support that can only be good news."

Accounting (As per Financial Stability Forum proposal)
"Fair-value did not cause the crisis and any moves to change accounting provisions must recognise the difference between financial data for investors and prudential requirements for regulators."

Cross border supervision (As per Financial Stability Forum proposal)
"This renewed commitment of cross-border financial supervision should allow companies to use branches and cross border sales; driving firms into subsidiarisation would be a retrograde step."

Last updated 01/07/2016