CPMA and PRA will come under NAO scrutiny
Share
The Consumer Protection and Markets Authority and the Prudential Regulation Authority will be subject to audit by the National Audit Office.
In its consultation on financial regulation reforms, the Government says it will legislate to make the CPMA and the PRA subject to NAO audit in a bid to deepen transparency.
The Public Accounts Committee will be able to scrutinise both the CPMA and PRA reports. The Treasury select committee will continue to grill the regulatory authorities and the committee will scrutinise new external members of the Financial Policy Committee. Five of the 11 members of the FPC will be external, which will include the chief executive of the CPMA.
The FPC will publish a financial stability report every six months, after which the Governor of the Bank of England will report to the Chancellor. The FPC will meet four times a year and minutes will be published.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (1)
Julian Stevens | 29 Jul 2010 10:01 am
It was proposed several years ago that the FSA's manifestly inept management of its finances would be subjected to scrutiny on the part of the NAO. Apart from the FSA's huge salary bill, a close look at its £20m+ budget allocation for bonuses (resulting in a £14m overdraft) and that monstrous golden parachute given to Clive Briault would surely have been two good places to have started, would they not?
But, for reasons unknown, that proposal seems to have come to nothing. How so? All we have seen since are Adair Turner's perennial calls for the FSA to be given more staff, more money and more power.
Unsuitable or offensive? Report this comment