Articles - IUA concerned about increase in UK regulatory costs

 The IUA is considering consultation papers issued by the Prudential Regulatory Authority(PRA) and Financial Conduct Authority(FCA) on an increase in the cost of regulation.

 IUA Director of Government Affairs Nick Lowe said “The latest proposed increase in regulated fees appears to be a substantial jump in costs that are already high by international standards.

 It is not clear to us why the London Market should be earmarked as requiring additional supervision resources since the wholesale and commercial nature of its business is generally considered to require lower levels of regulation than those areas of the industry catering directly for consumers.

 The IUA will argue that the London Market should not be required to bear a disproportionate share of such costs. The PRA and FCA have stated a commitment to reduce costs of regulation and we very much hope to see reductions in future years.”

 In total, general insurers are expected to be charged £46.4m during the 2013/2014 year with the FCA accounting for £22.1m and the PRA £24.1m. This compares to last year’s bill from the Financial Services Authority for £38.9m and £29.4m in 2011/12.