Ernst and Young, PwC, KPMG and Deloitte are stumping up £100,000 to fund an industry-led organisation on international financial regulation which is set to go live by the end of the year.

The International Centre for Financial Regulation aims to promote world class research and education in the field and plans to look at the dynamics of financial stability.

‘I think it can make a real contribution to regulation of international financial markets which are the oil of the economic engine of the world,’ said Michael Synder, senior partner of Kingston Smith and a member of the steering board of the new centre.

The initiative has the backing of the government which announced in its 2006 budget that it wanted to set up such a centre.

The government is providing £2.5m worth of funding over three years with the City of London also contributing £1m towards set up costs.

Barbara Ridpath, managing director of Standard & Poor’s in Europe, will take up the reigns as chief executive of the new centre in September.

Investment banks - Dresdner Kleinwort, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS have all agree to provide £100,000 per year for the first three years of the centre. Barclays, HSBC Citigroup and Standard Chartered are also offering funding to the same amount with insurance giants Prudential and Aviva on board too. Investment management firms, Aberdeen Asset Management and Man Group plus private equity group 3i are also contributing.