TSC calls for evidence in FCA probe
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The Treasury select committee’s inquiry into the Financial Conduct Authority will focus on its objectives, powers, accountability and how it interacts with domestic and European financial regulators.
The draft Financial Services Bill, currently being scrutinised by a separate Parliamentary committee, proposes breaking up the FSA and replacing it with the FCA, the Prudential Regulation Authority and the Financial Policy Committee. The FCA will regulate markets, the PRA deposit takers and insurance firms while the FPC will work to ensure financial stability.
Today, the TSC published its terms of reference for the inquiry which include whether the objectives and powers of the FCA clear and appropriate, whether it should have a primary duty to promote competition and if its approach to regulation be an improvement on the FSA’s.
The committee will also look at the accountability of the FCA, how it will interact with firms, the other domestic and European regulators and how the switch from the current tripartite system to the proposed twin peaks system will work in practice.
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Readers' comments (2)
Exasperated Me | 16 Sep 2011 2:09 pm
SIB
LAUTRO
FIMBRA
IMRO
PIA
SFA
FSA
PRA
FCA
FPC
NABRO "Not Another Bloody Regulatory Organisation"
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Julian Stevens | 16 Sep 2011 5:29 pm
A good starting point should be to ensure that the FCA is not just a phoenixed FSA, minus responsibility for regulating the banks (which, as the government's finally beginning to realise, are very nearly unregulateable anyway).
FSA Objectives ~ Whatever the FSA feels like pursuing (or ignoring, notably the entire contents of the Statutory, i.e. legislative Code of Practice For Regulators).
FSA Powers ~ Completely unbridled. The FSA does whatever it wants, often in the form of the wrong thing or the right thing the wrong way. And all Adair Turner does is call for more, more, MORE of everything.
FSA Accountability ~ Zilch (as discovered by the TSC). The FSA is a public sector body funded by the private sector, without having to account to anybody for the size or allocation of its budget. The present government has already annolunced that the FCA will be accountable only to its own board, which means accountable to nobody ~ how can such a declaration mean anything else?
The top priority should be the creation of an independent, all party Regulatory Oversight Committee with close ties to the NAO to hold the FCA to account for what it does with its budget. Anything less is just fannying about.
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