Sants: Solvency II costs may outweigh short-term benefits

In a Keynote address, Sants said there would be "winner and losers" as a result of the directive, but he stressed roll-out costs were likely to impact small firms in particular. This was mainly because diversifying business lines - more common in larger businesses - was likely to attract a lower capital charge, he said. "When looking at the short-term costs and benefits [of Solvency II], particularly in the context of an implementation bill for industry which will be considerable, it is debatable that for the industry as a whole the benefits will outweigh the costs for UK firms," he s...