The FSA has set up a special committee to scrutinise the Money Advice Service, its budget and business plan after facing a year of stinging criticism.
The minutes from the regulator’s July board meeting reveal a special committee will review the MAS business plan before it is presented to the board in December.
The board also demanded an update on the supervision of MAS in September, after it was revealed FSA chairman Lord Adair Turner has written to the Treasury several times over the accountability of MAS.
The MAS is currently the subject of a Treasury select committee investigation into its effectiveness and has faced criticism over its senior staff pay, online tools and marketing spend.
The FSA board minutes state: “The Board agreed that a committee of the board should be created to review the business plan and budget of MAS in detail prior to it being reviewed by the board in December.
“The board also requested an update on the supervision of MAS in September. The Board then agreed the outlined approach to the proposed oversight and risk assessment, business plan and metrics related to MAS.”
FSA acting chief operating officer Lesley Titcomb, MAS chairman Gerard Lemos and a representative from the Treasury will appoint the next chief executive after Tony Hobman leaves in January.
In a presentation to the FSA board, Lemos and outgoing chief executive Tony Hobman said there was no clear explanation of the role of MAS and the FSA and called for more clarity.
The pair said they would welcome closer challenge and input from the FSA on MAS’s business plan.