SCOTTISH NATIONAL Party MP Alex Salmond told the House of Commons yesterday the Financial Services Authority's new solvency regime may act as a "poison pill" for mutually-owned assurers such as Standard Life, says the Scotsman .
One of his key worries seems to be whether more jobs will go in Edinburgh if the life insurer has to demutualise. However, Salmond – joined by Vincent Cable MP – suggested to Ruth Kelly MP it may be anti-competitive. He was scathing of proposed solvency changes as tough new accounting rules could unwittingly "militate against major companies staying in mutual ownership". "If you ask a company to fully reserve for its mutual benefits, then you are taking away its competitive advantage. If the company was effectively to be chased into conversion from mutuality by certain aspects of ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
