Insurers and banks must have the same regulator

Association of British Insurers (ABI) director general Kerrie Kelly reacted to Chancellor George Osborne’s Mansion House speech announcing the scrapping of the FSA, warning of extra cost for consumers.

"The insurance industry is open minded to changes to the regulatory structure, but it is very important that any proposals do not add to avoid adding further costs which will ultimately fall to consumers," she said.

“The insurance industry has already invested a huge amount of time and money in regulatory changes over the last ten years, which was one of the reasons insurers came through the financial crisis in robust shape.

"It is also crucial that insurance companies and banks are overseen by the same regulator. Insurers are a major part of the economic and financial system and, as major investors, have a direct interest in and impact on banking."

FSA chief executive Hector Sants is staying on. Click here to read the full story.