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.
IMF changes opinion on UK economy
The International Monetary Fund (IMF) has today issued a change in opinion with regards to the UK economy with a suggestion that recovery will happen sooner than previously expected. While the IMF is of the opinion that GDP (gross domestic product) will fall by a worse than expected 4.2% in 2009 (against a former estimate of 4.1%) the news in relation to the economy as a whole is much more upbeat....Read More
Boxing Day sales are no more
More and more retailers in the UK are bringing forward their "Boxing Day sales" and in effect offering massive discounts and announcing massive promotions ahead of Christmas day. While it is common knowledge that the UK retail sector has been struggling for some time, each and every retailer in the UK is now trying to squeeze as much money as possible from consumers. We are seeing companies such a...Read More
National Savings and Investments slash savings rates
The government-sponsored NSI has reduced the interest rate paid on its direct ISA from 4.8% to 3.3% in line with the 1.5% reduction in UK base rates. The product currently comes with a guarantee that the rate of return will be 0.3% above the Bank of England base rate until April 2009. As we suggested on one of our earlier posts, savers are now being hit in the pocket as the authorities attempt to...Read More
Extra £1m premium bond prize announced
29/05/2014 A second monthly premium bond prize of £1m will be launched by National Savings and Investments (NS&I) this August. The announcement means that two people will win a tax-free lump sum prize of £1m each month, instead of the current single winner. Additionally, as of the 1st of June 2014, premium bond holders will be permitted to own a maximum of £40,000, an increase of £10,...Read More
Stockbrokers urge private investors not to ditch banking shares
Despite the fact that the UK banking sector is yet again at the centre of a controversial move by the authorities, stockbrokers in the UK have urged private investors not to ditch their shares. The US government has introduced not only a levy on the banking sector but also confirmed that the future size of banking institutions will be limited and some trading practices will be outlawed. While s...Read More