MPs on the joint committee scrutinising the draft Financial Services Bill are concerned the Treasury select committee will not be able to cope with the workload involved in holding the new regulators to account.
Under plans in the bill, the FSA will be replaced by the Prudential Regulation Authority, the Financial Conduct Authority and the Financial Policy Committee in 2013.
Speaking at the Labour party conference in Liverpool this week, Labour MP and joint committee member Nick Brown said: “Enabling Parliament to scrutinise the regulators properly is an emerging issue.”
Speaking to Money Marketing at the conference, Brown says: “The TSC will not be able to handle scrutinising three regulators at once. It is one of the best and most respected committees but we are asking it to do too much. These kind of structural issues must be addressed although the committee does not have the answers yet.”
The TSC has run 18 enquiries this year, six of which are ongoing, and has held 25 public evidence sessions. Before the summer recess there was some disquiet among its members about the workload.