The parliamentary commission on banking standards is calling for financial regulators to be more accountable to the Treasury select committee.
In the commission’s final report, published this week, it says regulators too often get involved in “turf wars” and try to avoid blame for their decisions.
It calls for the Bank of England, Prudential Regulation Authority and Financial Conduct Authority to strengthen its internal scrutiny and have a duty to respond to reasonable information requests from the TSC.
The commission says any future investigations into regulatory failures, such as those into the collapse of HBOS and the Royal Bank of Scotland, should be conducted by an independent person appointed by the TSC, rather than the FCA.
The report states: “The new regulatory structure needs accompanying accountability mechanisms to ensure parliament, and through parliament the public, have the explanations to which they are entitled.”
It says regulators will have more powers and may need to make unpopular decisions, so need the authority of public accountability.
Worldwide Financial Planning IFA Nick McBreen says: “If we get more accountability, more visibility, more transparency and the right people asking the right questions with clear answers, then it will be a big step forward.”
Read our full coverage of the Banking Commission’s final recommendations: