Labour is considering pushing for a new committee of expert MPs to oversee future regulators, according to Shadow Treasury financial secretary Chris Leslie.
Later this year, Parliament will look at Government plans to replace the FSA with the Prudential Regulation Authority and the Financial Policy Committee under the Bank of England and the independent Financial Conduct Authority.
The Bank is accountable to Parliament and senior staff appear before the Treasury select committee but Leslie says the “considerable volume” of regulation means more oversight is needed.
He says: “We definitely need more than the Treasury select committee. When we start pre-legislative scrutiny, we will talk to the authorities of the House to see if such as comm-ittee is the best way of providing extra scrutiny.”
Anand Associates managing director Bhupinder Anand says: “It is a good idea but at the end of the day, few politicians have knowledge of the real world and always have one eye on the opinions of the electorate and party bosses. There needs to be industry input to make it effective.”