Economists publishing their research in Economic Affairs*, the journal of the Institute of Economic Affairs, have heavily criticised the UK's system of financial regulation. The study covers all aspects of regulation of pensions, insurance and banking regulation and examines the regulation of the sale of financial products as well as the regulation of the solvency of financial institutions.
Chris O'Brien, a former Appointed Actuary and the Director of the Centre for Risk and Insurance Studies at Nottingham University Business School, argues that the current solvency regime used by the FSA for insurers, may mean that firms appear significantly less solvent than they really are. This is troubling particularly in the current low solvency climate. A better app