IFAs have backed the Treasury select committee’s call for greater scrutiny of regulatory costs to be written into legislation.
In a report on the new regulator, published this week, the TSC says benchmarks for FCA cost-benefit analyses should be laid down in the Financial Services Bill.
It says increasing costs for firms, which are ultimately passed to consumers, have been “neglected” in the past and CBAs should be carried out on some regulations already in place.
The report also says to improve the FCA’s accountability, the committee should be able to demand retrospective reviews of the regulator’s activities, scrutinise its chief executive prior to appointment and the board should be required to publish its minutes.
Committee chair Andrew Tyrie (pictured) says the bill is being rushed and risks creating a “defective” regulatory system.
Bloomsbury Financial Planning certified financial planner Robert Lockie says: “Hasty legislation is often full of flaws and could have to be rewritten.”