Insurers want detail ahead of independence

Insurance companies plan to make submissions to First Minister Alex Salmond on how the sector would be regulated in an independent Scotland.

A leaked e-mail from Prudential’s UK deputy chief executive, Barry O’Dwyer, revealed that he expects to engage in discussions but the company would not “take sides” as the referendum approaches.

The e-mail also suggests that O’Dwyer and other industry executives met Salmond last week.

The Scottish Government said yesterday there had been no formal meeting and the e-mail probably referred to a financial services dinner attended by the First Minister.

It added: “We welcome all submissions to the Scottish Government’s [referendum} consultation, which has already attracted more than 7,000 responses. We are committed to having a fully informed debate on Scotland’s future.”

O’Dwyer’s leaked e-mail also appears to criticise the Financial Services Authority (FSA).

He said that some of the proposals floated by the FSA regarding changes in regulations for independent financial advisers would have been “horrendous” for customers, while he also attacked the regulator’s consumer panel, and revealed the insurance industry had been in discussions with the UK government on restructuring workplace pensions.

The company said that the e-mail was a “misjudged” attempt to inject humour into weekly staff communication.

DOMINIC JEFF