UK insurers will operate under a lightened regulatory load after the Treasury approved a less intrusive role for the country’s Financial Services Authority (FSA).

Changes to the Financial Services Act will reduce the burden on the FSA through less stringent authorisation requirements and removing “unnecessary” consultation between the FSA and European regulators.

Treasury Economic Secretary Kitty Ussher says the financial services industry will benefit by reducing the FSA’s workload. “This package of measures will reduce red tape, which will benefit the business the FSA regulates,” she said.