The Treasury select committee inquiry into Equitable Life's closure must not limit its investigation to the role of the FSA but include Government departments, says the Financial Services Consumer Panel.
Chairman Colin Brown has written to the Parliamentary committee expressing his concern that the inquiry will only cover the period since 1999 when the FSA took over.
The Labour-majority committee will hold an inquiry next week into the events leading up to Equitable's closure to new business, questioning management and FSA chairman Howard Davies.
But Brown wants the committee to investigate the DTI and the Treasury's role. He is concerned that statements by Treasury economic secretary Melanie Johnson continually refer to the internal FSA inquiry, which is only examining its own role. He does not want the committee to fall into the trap of ignoring earlier events.
Brown's letter says: “There is a serious gap in the scrutiny of the events that led up to Equitable Life's closure. The panel's view is that this omission is likely to lead to an incomplete analysis of the causes of the crisis.”
Committee member Labour MP Jim Cousins says: “I hope that Martin Roberts, who has been the chief regulator at the DTI, Treasury and FSA, will appear before the committee next week.”