FSA's Turner ends insurance regulation fears

ADAIR Turner, head of City regulator the Financial Services Authority (FSA), reassured the insurance sector yesterday, saying there was no need for a rules &ldquo;revolution&rdquo; in the sector equivalent to the one banks are facing. <br /><br />He told the Association of British Insurers&rsquo; biennial conference that liquidity risks &ndash; which caused the banking collapse &ndash; are less important for insurers. The sector has voiced fears it may be lumped in with banks when it comes to new regulation. <br /><br />In his first speech to the insurance sector as FSA boss Turner said: &ldquo;It&rsquo;s nice to talk to a sector of the financial industry which has not been responsible for destroying any chance of weekend relaxation&rdquo;. <br /><br />He accused the regulator of having attempted &ldquo;supervision on the cheap&rdquo; before he took charge and repeated threats of a permanent end to &ldquo;light touch&rdquo; regulation.<br /><br />His speech followed an address by Paul Tucker, deputy governor of the Bank of England, who instructed banks to lend more, saying it was &ldquo;in the best interests of the banks themselves&rdquo;. <br /><br />Tucker added that there were early signs that quantitative easing was working but warned that medium-term economic risks remain.