The Consumers' Association is urging the Government to place the Financial Services Authority's consumer panel on a statutory footing by devoting a clause to it the forthcoming Act.
The Consumers' Association put its proposal to the Treasury Select Committee inquiry into the Financial Services Authority and the Financial Services and Markets Bill.
The association is concerned that without specific mention that the panel will have a much lower status in the regulatory infrastructure and will not be effective in protecting consumer interests.
Managing director Sheila McHechnie said: "We would be happier if the draft Bill proposed that the panel had statutory regulation. We would also be supportive of a panel made up of 11 totally independent consumers.
"We believe either system would be more effective at ensuring the consumers needs are not marginalised."