UK government to challenge EU over insurance rules
The UK government is set to challenge the EU commission head-on with regards to solvency II rules which are set to be introduced to the European marketplace in the short term. The UK government believes that these "over conservative" solvency rules will see UK insurance companies having to shore up their reserves by up to £50 billion. There will obviously be a cost to this additional reserve requirement, something which is likely to be met by customers.
The UK has one of the most competitive insurance markets in Europe and yet again many people are pointing the finger at the EU commission, which is determined to crack the UK financial markets and bring them under the regulatory control of the European Union. In effect this has already happened with the various treaties signed by European member states but the UK government is set to tackle this particular issue head-on as it will have a detrimental effect on the UK insurance sector, pensioners and future rates of investment return.
The issue of increasing reserve capital is a direct consequence of the credit crunch which saw a number of "solid assets" collapse like a pack of cards once the financial system began to seize up.
KPMG warns of more losses for high-street banks
Accountants KPMG have today issued a damning report on the UK banking sector with a belief that bad loans will remain a significant issue for high-street banks for the foreseeable future. A weakening employment market and a property sector which has show signs of life, although never seems to turn the corner could be the catalyst for further large write-offs by the U.K.'s leading banks.
FSA fines three City firms £4.2 million
The Financial Services Authority (FSA) has been flexing its muscles yet again with the announcement of fines totalling £4.2 million served against three firms in the City of London. Credit Suisse was fined £1.75 million, market maker Getco Europe £1.4 million and broker Instinet Europe was hit with a £1.05 million. The fines have been served due to repeatedly failing to provide trading figures...Read More
Will Diageo backtrack on plans for plant closure in Scotland?
The last few days have seen the bid to save the Kilmarnock Diageo plant from closure reach new highs with hundreds of workers, members of the public and politicians involved in various marches and protests over the weekend. While the company itself has been fairly quiet over the last few days there is a feeling that despite the public outcry with regards to the planned closure, it is highly unlike...Read More
Authorities reveal major tax error
HM Revenue and Customs has this weekend revealed that nearly 6,000,000 people in the UK paid the wrong amount of tax last year with a shortfall of around £2 billion for the PAYE system. Due to the error at HM Revenue and Customs around 1.4 million people in the UK will be forced to pay back an average £1420 to cover the under payment of taxes in the past. Through no fault of their own this means...Read More
Scotland set to become green energy capital of UK
Alex Salmond yesterday announced a deal between Scottish and Southern Energy and Mitsubishi Heavy Industries which will see 1,000 employment opportunities introduced to Glasgow over the next five years. The two companies are set to work together on green energy and green energy systems with specific focus upon offshore wind farms and electric powered cars. If there is one area of the UK which h...Read More