FSA head of prudential business unit Andrew Bailey is calling for the Treasury select committee to have much greater powers of scrutiny over the Financial Conduct Authority and Prudential Regulation Authority.
Giving evidence to the Parliamentary Commission on Banking Standards yesterday, Bailey said he wants an amendment made to the Financial Services Bill to hugely strengthen the power of the TSC by allowing it to force the FCA to conduct reviews and hand over information.
He said: “There needs to be greater transparency of the judgements we make and the decisions we make than is currently being provided.
“It is important for regulators because a judgemental structure of supervision which emphasises the big issues and makes the appropriate judgements on them must be matched by proper transparency and accountability otherwise it will not work.
“If not then the legitimacy of what we do will inevitably be called into question. Our standing would be undermined and we would get ourselves back into trouble.”
Bailey highlighted the TSC scrutiny of Barclays’ role in the Libor scandal in July as a possible example of regulator scrutiny, although he described it as unsustainable model.