The next Budget will set out tests for the FSA to comply with the Hampton review which looked at cutting red tape.
The pre-Budget report says the Government is to speed up implementation of the Hampton recommendations.
The National Audit Office is currently undertaking a “value for money” review of the FSA and its findings will be laid before Parliament next year.
The pre-Budget report says that the FSA has made “substantial progress” towards risk-based regulation. The report says: “The assessment process will focus on a regulator’s adherence to the Hampton principles and encourage continuous improvement.”