ABI upbeat after final proposals hammered out yesterday

A deal on Solvency II deal could happen this week the ABI has confirmed.

A spokesman said: "I think it is pretty close. The Commission, Parliament and finance ministers' representatives spent 11 hour together on Tuesday and stayed behind locked doors all day yesterday. The smoke signals coming out are saying it may happen within the next couple of days."

A compromise text could be voted on before parliamentary elections in June.

If this effort fails, the legislation – which is due to come into force in 2012 – would almost certainly be held up for many months, the ABI said.

Parliamentarians have set out a final position that was being explained to member states. Unless this was rejected outright, a final deal could still be possible later this week.