Andrew Tyrie, Chairman of the Parliamentary Commission on Banking Standards at the Treasury Committee, has written to Andrew Bailey, PRA CEO, with questions on Solvency 2. The Treasury Committee is concerned about:
- the costs of the protracted negotiation process;
- the limited ability for national supervisory authorities to exercise judgement and address idiosyncratic risks under a maximum harmonisation Directive; and
- the impact of Solvency 2 on UK insurance companies’ international competitiveness.
The correspondence has been published on the Parliament’s website. (Source: Solvency 2 is “An Object Lesson in How Not to Make Law”, says Tyrie)