Treasury select committee member Mark Garnier has called for Parliamentary oversight to be built into the Financial Conduct Authority.
At a PanaceaIFA event this week, he said the regulator should remain independent but there should be some scope for Parliament to intervene in certain instances.
He said: “We have to think hard about how we build a mechanism into the new legislation to be able to say, on this one, would you mind having another look.
“The Treasury select committee can do that to an extent but there is no supporting legis- lation and sometimes there needs to be, even if it is as simple as a veto over the chairman.”
Garnier added a balance needs to be struck so that MPs could not constantly force the regulator to change tack, which would increase regulatory uncertainty.