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.
When did you last review your tax code?
It may surprise many to learn that the vast majority of people in the UK have no idea what their tax code is or how it relates to their situation. The vast majority would not even know where to find a tax code on their payroll slip with even less chance of knowing their relevant allowances. Unless you review your own tax situation there is no way that the Inland Revenue will repay any tax they hav...Read More
How low can the UK property market go?
The UK property market has been under pressure for some time and opinions amongst experts are very mixed with regards to the direction in 2009. While many are hopeful of a stabilisation in the market there are others suggesting that 2009 could actually be worse than 2008. However, the majority of parties with an interest in the property market are of the opinion that until bank lending is resurrec...Read More
Manufacturing Jobs At Risk As Sector Turns Down
In what many are seeing as another nail in the coffin of the UK economy it has been revealed that manufacturing growth came to a halt after a steady three year recovery in the sector. While not wholly unexpected, the surprisingly sharp deterioration in trade was a shock to many as was the news that a whole host of manufacturing jobs are now at serious risk. It seems that the manufacturing indus...Read More
Regulatory spotlight to fall on absolute return funds
Absolute return funds are to be investigated by the Financial Services Authority (FSA), the regulator has indicated.The funds are a relatively new type of investment vehicle, which promise returns despite investing in the stock market.So far, the products seem to have kept their promises - despite falling markets, the seven funds which have been on the market for more than a year have returned an...Read More
UK insurers may need to raise £70 billion
As we near the introduction of the EU solvency II directive in 2012 the battle lines are certainly been drawn with the Association of British Insurers today suggesting that UK insurance companies may need to raise as much as £70 billion in the short term to cover the new regulations. The regulations, expected to become law in 2012, would require a total recapitalisation of the insurance sector in...Read More