New financial regulation centre set up

LONDON (Reuters) - A new International Centre for Financial Regulation will be set up in London, the Treasury said on Wednesday.

The centre will carry out research and offer training on international regulation with a view to influencing global laws and will be discussed by Chnacellor of the Exchequer Gordon Brown and his closest advisers on Wednesday.

The government will provide 2.5 million pounds to the centre over the next three years and City of London institutions have pledged further support.

Mervyn Davies, chairman of Standard Chartered, will prepare the centre for launch.

"Developing a new world-class centre of financial regulatory expertise will not only help to inform the UK's principles-based regulatory approach but influence developments in regulation across the world," Treasury Minister Ed Balls said in a statement.

Separately, Lord Levene, chairman of Lloyds, will present a review of the London insurance market to the high-level group, including proposals for a market-led initiative to enhance London's position as a centre for wholesale general insurance.