Single EU regulator will oversee national bodeis says FSA

The chairman of the Financial Services Authority (FSA) Lord Turner told the Association of British Insurers (ABI) conference that Europe should establish a single financial regulator that would supervise national watchdogs, the Telegraph reports.

"We have to create mechanisms which, by a supervisor of supervisors, achieve the effect of what we need to achieve," he said.

Insurers different to banks

Lord Turner said regulation of a post-financial crisis banking system would not lead to heavy-handed regulation across other sectors.

"The regulation of insurance companies needs to be different from the regulation of banks, even while we identify and track the potential knock-on consequences from one sector to others," he said.

But there would be "no return to light-touch regulation".

Archie Kane, ABI chairman, said: "We need to restore confidence in financial regulation and in those who regulate. It is vitally important we get this right for the industry and avoid a direct read-across from the regulation of banking to the insurance sector," said Mr Kane.