Financial Services Compensation Scheme chairman David Hall has called for the FSCS to be made formally accountable to both the Prudential Regulation Authority and the Consumer Protection and Markets Authority.
Giving evidence to the Treasury select committee last week, Hall said he does not want the FSCS to be accountable to the CPMA only.
Hall told the committee that the FSCS has an accountability to the Bank of England to advise them on payouts under the Special Resolution Regime and insisted that formalising that accountability makes sense.
He said: “The proposal is that we should be directly accountable to the CPMA but have strong links with the PRA. We would like to go a step further in our relationship with the PRA and make that a more formal accountability.” He added that the FSCS would rely on the PRA to ensure that financial institutions hold consolidated information about each of their customers to enable the FSCS to take speedy action after a default.
He said: “Just as we need to be accountable to the PRA and the CPMA, so we need the PRA to ensure the industry has their databases, in the single customer view as we have described it, in such a position so that we can meet the seven-day aspiration for payout.”