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Labour calls on FSA to be more accountable to Parliament

Labour has called on the FSA and future financial regulators to be made more accountable to Parliament.

In an interview in this week’s Money Marketing, Shadow Treasury financial secretary Chris Leslie says concern over the retail distribution review is an example of the “democratic deficit” between legislators and regulators.

This marks a significant policy shift for Labour which created the FSA in 2001 as an independent regulator.

Leslie says: “There has to be a solution for the RDR and if Parliament had power or control over it, we would probably go through the legislative process and find it.”

From 2010/2011 the FSA will be audited by the National Audit Office, which will allow the public accounts committee to receive and investigate reports into aspects of the economy, efficiency and effectiveness of the FSA’s performance. The NAO will also audit the CPMA and Prudential Regulation Authority.

Leslie says he will await further details of the new regulatory structure before proposing changes aimed at increasing Parliamentary accountability.

Lansons director Richard Hobbs says: “A major consideration is the quality of the examination the FSA has faced in the past. While Labour was in power, the FSA, Gordon Brown’s creation, escaped rigorous examination but the new Treasury select committee should ensure more appropriate scrutiny takes place.”

Cicero Consulting director Iain Anderson says: “Labour is carefully crafting its new positioning. There is also a question of ensuring the Treasury can provide the right oversight of the new regime and I expect Labour to ask it.”

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Comments

There are 19 comments at the moment, we would love to hear your opinion too.

  1. Labour should shut up and go and die quietly in a corner somewhere. They created the monster – why didn’t they have any of these great ideas when they were actually “running” the show.

  2. Gordon Brown’s creation or not it is good to hear Labour acknowledge there is an issue.

  3. Why didn’t they do something about it then when they were in power.Typical!!

  4. Steven Farrall (Adviser Alliance) 21st January 2011 at 9:03 am

    hahahahahahahahahahaha! Tossers

  5. They had 13 years to deal with this issue. Its so much easier to raise issues when in opposition!

    It would be nice to see though. I wonder how many other organisations are not accountable to parliament – not many I would imagine!

  6. Well, this is a first – I agree with all previous posters! If Labour wanted the FSA to be more accountable to Parliament, it should’ve put that in the Act it passed with its unassialable (at that time) Parliamentary majority. Opportunistic hypocrites!

  7. Has “APRIL FOOL’s” day arrived already ?

  8. Given they set up the FSA and protected from any wrong doing and made it able to do what it like regardless of Parliament, why do they not admit they were WRONG to start with.

    Now they want it to be more accountable.

    I wish I could laugh but I can’t.

  9. Irrespective of the political bias being shown in some of the replies. Dont forget that not all your clients are conservative . Dont forget Margaret Thatcher once famously said “you cannot buck the market” and then set up regulators to oversee the utility and Rail operators in the full knowledge that you “can buck the market” Financial services is no different. The FSA or whoever comes in to replace it is there to prevent market excess and protect consumers. I admit it exceeds it remit and should be reigned in to protect those consumers and not be judge and jury over it’s own legislation and rules.
    one of the FSA rules is that advisers “should know their customers” Unfortunately the FSA does not know it’s IFA’s

  10. A pity that Labour did not ask them to be more accountable while they were in office. So easy to have the answers when you do not have to prove anything!

  11. The only way this could come about would be for the FSMA of 2000 to be revisited and substantially revised. For as long as Mark Hoban holds the steering wheel, though, it’s hard to anticipate any prospect of that. He seems to be the FSA’s man at the Treasury ~ whatever the FSA proposes, he simply washes his hands of it on the grounds that the FSA is independent of government. Not that I believe a word of it, but what ca we do?

  12. Can’t fail to agree with the others posting. I nearly fell of my chair when I read this.

    TGFI is all I can say.

    I wouldn’t mind but its not like we pay them peanuts.

  13. On this issue I would waive the party politics. The FSA and future financial regulators need to be accountable and sustainable. (We have had LAUTRO/IMRO, PIA, FSA and now CPMA to mention a few!). A period of less contention and stability would be welcomed.

  14. Everyone present at the RDR debate in Parliament last year could see that Mark Hoban is old New Labour, a poor kind of GB II. Either that or a banker’s stooge. Given that he is supposed to be part of the new “Big Society, we’re all in it togetherher (we certainly are) party for business” helps to demonstrate that our natural state is Chaos. I love irony, but not in this case – it isn’t funny, it’s tragi-comic.

  15. It is good to see an MP calling for the regulator to be accountable to Parliament.

    However, at the risk of turning this into Private Eye, has anybody noticed the similarity between Chris Leslie, MP for Nottingham East and supporter of the FSA being accountable for Parliament and Chris Leslie, former MP for Shipley and supporter of Gordon Brown’s establishment of an unaccountable FSA?

    Are they by any chance related?

  16. i do not think Labour would make such comments if they were in government and would perhaps give more powers to FSA. Labour created the monster which became more powerful than the creator. Thousands of advisers have been driven out of industry and survivors have been subjected to death by thousand cuts. I am sure FSA will bring in numerous new rules before it is abolished.

  17. Peter Turner

    Same chap. Never had a real job. Never spoke against any Labour policy in office. Blairite puppy.

  18. This monster needs to be brought under control – FAST!

    It’s history is one of complete failure, which has cost every household in the UK over £3000

    The Conservative also have something to answer for, as when in opposition, they described the FSA as unfit for purpose! If it was unfit for purpose , when they were in opposition, why is it now fit to continue to squander millions on the RDR Fraud?

  19. What a monster they have created!!!!!!

    No controls, no accountability, no limit on expenses, no idea and no support from any where!!!

    Set up by an inept government with inherited ineptness at its core & unfortunatley missed by the new coalition as its dark fingers are going to the BoE!!!

    May god have mercy on our soul !!!!

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