Lord Turner, chairman of the Financial Services Authority, published his report on the present economic turmoil on 18 March 2009 (see our blog here).

Stephen Haddrill, Director General of the Association of British Insurers (ABI), responded to Lord Turner's review shortly after its publication, saying that the report could be a "significant step towards improving regulation."

The ABI agrees with Lord Turner that a European regulatory authority would ensure effective cross-border supervision. Further, the ABI argues that such a body should possess the authority to settle disputes between regulators over cross-border companies.

With regard to remuneration, the ABI states that there must be no incentive for employees of banks to take long-term risks for short-term benefits and that prudential standards should be tightened if remuneration policies do not reflect this.

The full ABI press release can be found here.