Legal & General (L&G) has reported an increase in operating profits for full-year 2011 after a marked rise in its investment management (LGIM) and international divisions.

The government is considering issuing "super gilts" - bonds with a repayment date lasting 100 years or more - which it hopes will allow it to lock in the current record low base rate.

The Financial Services Authority (FSA) has cited a number of potential concerns it believes could lead to consumer detriment as firms make changes to their business models ahead of RDR implementation next year.

Insurance giant Prudential saw profits climb marginally to £723m last year.

The asset management division of financial services group Close Brothers made a loss in the six months to 31 January, as it finalises a restructure which has seen it launch an advised service and includes plans for a direct-to-consumer proposition.

The UK economy is perpetually subjected to shocks and pressures, rendering hopes of maintaining financial stability indefinitely "over-optimistic", Monetary Policy Committee (MPC) member Paul Fisher said last night.

Operating profits across the UK units of Standard Life fell last year due to a fall in income and higher acquisition expenses.

Allan Rosengren, the former joint chief executive of Lighthouse Group, has joined Signature, the discretionary investment management division of Rowan Dartington.

Lighthouse Group has reported an operating loss of £2.66m for full-year 2011, largely due to one-off costs related to the winding down of two subsidiary businesses.

The Chancellor George Osborne is to set out a plan to reduce corporation tax to 20% in next week's Budget.