The British Bankers’ Association is lobbying the Government over fears that the new Consumer Protection and Markets Authority and the Prudential Regulation Authority will lack accountability.
According to the Telegraph, the BBA and many of the UK’s largest banks fear that scrapping the FSA will leave too much power in the hands of a small, unelected group that will not be required to explain their actions.
It says the BBA has put together a working group to formulate an industry-wide response to the Government’s proposals.
The Telegraph says while the FSA is required to hold an annual public meeting and regularly meet with senior industry managers through the Practitioners’ Panel, the CPMA and the PRA will not be.
There are concerns that the PRA will only be accountable to the court of the Bank of England, leaving too much power in the hands of a small group, led by the Bank of England governor Mervyn King.
BBA executive director Simon Halls says: “It is important that the new regulatory architecture takes into account the legitimate concerns of those who will be regulated about governance and accountability.”