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ABI joins FSA Osborne row

<div>TORY shadow chancellor George Osborne is facing mounting opposition over his plans to scrap City watchdog the Financial Services Authority (FSA), with the Association of British Insurers (ABI) now lobbying against the move.<br /><br />The ABI believes the FSA has shown it can adapt to a new era of regulation, and disagrees with Osborne&rsquo;s plans to scrap the tripartite system of regulation.<br /><br />&ldquo;We believe the tripartite system can be made to work, and can continue more effectively,&rdquo; an ABI spokesman told City A.M..<br /><br />He said insurers have fared relatively well in the credit crunch and should not face unnecessary upheaval due to banking sector failures that led to the downturn.<br /><br />And he added the Tory party, which is tipped to become the government after a general election next year, is being receptive to discussions.<br /><br />The ABI has strong ties with the Tory party and Osborne delivered a keynote speech at its last conference.<br /><br />Osborne has pledged to pass many of the FSA&rsquo;s powers to the Bank of England and create a new regulator out of the Financial Reporting Council (FRC) and Takeover Panel.<br /><br />A Tory spokesman said: &ldquo;We are talking to all the bodies involved.&rdquo;</div>