The Financial Conduct Authority could be made more accountable for its actions if it decides to publish the views of board members who disagree with its decisions, according to the Investment Management Association.
The draft financial services bill, currently being scrutinised by a Parliamentary joint committee, proposes breaking up the FSA and replacing it with the FCA, the Prudential Regulation Authority and the Financial Policy Committee. The FCA will regulate markets and conduct of business, the PRA will oversee deposit-takers and insurance firms while the FPC will work to ensure financial stability.
Giving evidence yesterday to a joint committee on the draft Financial Services bill, IMA chief executive Richard Saunders told MPs the FCA could be made more accountable if it published dissenting views at board level.
He said: “Another idea that is worth is exploring is the publication of dissenting opinions or votes at board level. This is done routinely with the Securities and Exchange Commission in the US and it is done routinely with the Monetary Policy Committee in the Bank of England. We think that could be another avenue to explore for introducing accountability.”
He added there could be increased scope to use non-executive directors to act in an oversight role.