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.