London can lead the way out of the financial crisis, but it also has the most to lose warns The Association of British Insurers (ABI).
"With the financial services sector contributing 8% of the UK's GDP, a bad outcome would be a loss felt in London and in towns and cities across the country," he says.
"If the G20 flirts with protectionism, second-rate competitors will be given an edge they do not deserve at the consumers' expense and the UK will be the clear loser."
Whilst the ABI accepts the need for some reform of regulatory structures, Haddrill says those who criticize London's way of regulating need to remember what has been achieved by the FSA and the insurance industry.
"Since 2003 insurers have weathered this crisis with a resilient capital position, because of a regulatory process based on careful assessment of risk and prudent reserving," he says.
"It is a sophisticated regime that relies on hard analysis not crude ratios topped up by a bit of cash to meet the unexpected."
He says the Spanish central bank does not have a monopoly of the answers and urges London to make its voice heard so unnecessary costs for industry and consumers are not hardwired into the system for a generation.
"The ABI believes a pan-European supervisor of supervisors could be a sensible way to improve cross-border regulation in the EU," he says.
"It makes sense for this body and any other pan European financial supervisory body to be based in London, which has a key role to play at the heart of world markets as the bridge between Europe and the rest of the world."IFAonline
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